Apple has announced changes fees App Store in the EU to comply with the Digital Markets Act and end its ongoing dispute with the European Commission. The company has reduced its so-called Core Technology Fee and simplified its pricing structureso that apps distributed through alternative marketplaces or over the internet pay less.
In announcing the changes, Apple said it had “worked closely” with the EU and that the updates would “resolve Apple’s disagreements with the Commission regarding business terms and alternative distribution.”
The European Commission has confirmed that it approves Apple's changes to its App Store, stating: "The Commission welcomes Apple's changes to its business terms, which come after a close dialogue between the Commission and Apple. The changes follow the Commission's non-compliance decision on Apple's guidance terms and preliminary findings on alternative app distribution."
Following Apple's announcement, the Commission will monitor Apple's effective implementation of the new terms . Under the Digital Markets, users in the EU have the right to full and effective choice of alternative app distribution channels.“.
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The EU says it will continue to monitor how Apple implements the new terms, which will come into effect on October 1.
EU approves App Store changes – What does Epic say?
While the EU has approved Apple’s planned changes, Apple’s legal rival Epic Gamesis not happy with the new fee structure, condemning the “new unnecessary fees.” Epic Games said Apple’s new terms do not comply with the Digital Markets Act and claimed that if the EU accepts the terms, the law “will be rendered meaningless.”
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“Apple has announced new unnecessary fees in the EU that do nothing to open up the mobile app ecosystem to competition, as required by the Digital Markets Act.”.
Apple will now charge:
• 20% for alternative in-app payment
• 15% for links to out-of-app purchases
• 5% Core Technology Commission for payments made on applications downloaded from alternative stores or the internet
The law makes it clear that Apple must allow developers to offer links to the internet for purchases “without charge” and must allow “effective use” of competing stores. Apple’s terms intentionally violate the Digital Markets Act. If the Commission accepts the terms and stops its ongoing enforcement actions, the law will become meaningless and consumers and developers will not experience the benefits.”
Under the new terms, Epic Games will have to pay a 5% fee on digital purchases made through the Epic Games Store on iPhone and iPad in the EU. For an app distributed through the App Store with a link to purchase options, Epic will have to pay 15%.
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Apple applies lower rates to participants in the Small Business Program, Video Partner Program, and Mini Apps Partner Program. It also waives the Core Technology Commission for small purchases. Epic Games does not qualify for reduced fees.
