Apple adds nearly endless 20 percent fee for developers in latest EU update

Apple's new European rules impose a steep commission on off-platform sales, seeking to comply with the EU's Digital Markets Act.

: Apple introduces a new fee structure in the EU, charging developers up to 25% for off-platform sales. The changes come after EU regulators cited Apple for violating the Digital Markets Act. Critics argue the new rules make it difficult for developers to operate outside Apple's ecosystem.

Apple’s updated App Store rules in the EU allow developers to link to external payment options, but impose a hefty fee structure. Starting this fall, developers can include purchase links outside their apps, facing a ‘store services fee’ of up to 20% on off-platform sales for one year from installation. A 5% initial acquisition fee is also added, potentially raising Apple's commission to 25% on digital goods and services purchases within the first year of app installation. Critics, like Tim Sweeney of Epic Games, argue these fees make it impractical for developers to distribute apps on competing platforms.

The changes follow the EU charging Apple with violating the Digital Markets Act in June and fining the company €1.84 billion for anticompetitive practices. Despite adjustments, developers still face substantial economic barriers. Apple’s rationale is that these fees compensate for the value its app store provides in connecting developers and maintaining platform services. Outside the EU, Apple’s commission on in-app purchases can reach up to 30%.

Spotify’s Jeanne Moran challenges Apple’s compliance with the DMA, calling for immediate EU enforcement and penalties. As the EU continues to investigate Apple’s restrictive policies, including the Core Technology Fee, developers are offered small concessions, such as exemptions for free apps and a one-time opt-out option from new terms. However, these changes do little to reduce the overall burden on developers looking to utilize external payment systems.

AppleEUTech Policy