Apple Modifies Its App Store Rules in Europe to End Dispute with the Commission

Apple continues to make substantial changes to its App Store policies within the European Union, in an effort to resolve ongoing disputes with the European Commission over commercial terms and alternative app distribution mechanisms. This move comes in response to mounting regulatory pressure imposed by the European Digital Markets Act, following a series of legal confrontations and fines that targeted the company.

When the New Terms Begin

Apple announced that the updated commercial terms will take effect starting October 1, when all developers who distribute their apps will be moved to a unified set of commercial terms. This unification aims to simplify the contractual framework, which was marred by complexity in earlier versions.

The New Commission Structure

The updated commission system includes several rates that vary according to how in-app purchases are completed, as follows:

• A 26% commission on apps that rely on Apple's in-app payment system.
• A 20% commission for developers who turn to alternative payment service providers.
• A 15% commission on purchases that direct the user outside the app via a link.

The company will also apply a new fee known as the "Core Technology Commission" of 5% on digital transactions made within apps distributed through third-party stores or via the web. Some categories receive reduced rates, such as participants in the small business program or partner programs specializing in mini-apps and video.

Greater Flexibility in Payment Options

Under the new rules, developers in the European Union can now combine the in-app payment system and alternative payment systems simultaneously. However, Apple has required a commitment to the chosen payment option for a full twelve months, in order to provide consistency and clarity for users and avoid frequent changes.

Elimination of Old Fees

Among the most notable changes is that Apple has decided to abandon a number of fees that had drawn wide criticism, the most important of which are:

• The initial user acquisition fee.
• The store services fee.
• The "Core Technology Fee," which amounted to half a euro for each download exceeding one million installs annually.

Web distribution is limited to the European Union region only, with specific conditions set for who is eligible to operate an independent online app store, such as being a company listed on the stock exchange or having completed a certified financial audit.

Background of the Dispute with the Commission

The root of these amendments goes back to the Digital Markets Act enacted by the European Union to regulate the operations of major technology companies. Apple has continued to voice its objection to this legislation, and it was even fined last year after the Commission concluded that its practices related to preventing users from being steered toward external payment options violated the provisions of the law. The company also recently lost its attempt to exempt the App Store and the iOS system from the scope of the law's application.

New Features to Protect Children

The updates also included a package of measures to protect minors within the European Union. Children's apps will not be allowed to include links directing to external sites to complete transactions, and Apple will prevent directing users under the age of thirteen to external purchase sites. As for users under eighteen, they will be required to obtain permission from a guardian when attempting to make purchases through alternative in-app payment systems.

These amendments reflect Apple's earnest efforts to reconcile the requirements of regulatory compliance in Europe with maintaining its commission-based economic model, at a time when scrutiny of the practices of technology giants is increasing around the world.

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