Apple Slashes EU App Store Commissions and Drops Per-Install Fees

Apple has announced new business terms for apps in the European Union that it says resolve its disagreements with the European Commission over fees and alternative app distribution. Every developer distributing apps in the EU will move to a single set of terms. Developers can sign now, and the changes take effect Oct. 1, Apple said in a newsroom post.

Per-Install Fee Replaced by a Commission

The Core Technology Fee, a per-install charge on developers that reached very large scale, will be replaced by a Core Technology Commission of 5 percent on digital transactions in apps distributed outside the App Store, through alternative marketplaces or the web. The new terms also eliminate the initial acquisition fee and the store services fee.

New Commission Rates

For App Store apps using Apple In-App Purchase, the commission will be 26 percent, or 15 percent for most developers, including members of the App Store Small Business Program, Mini Apps Partner Program and Video Partner Program, and for auto-renewing subscriptions after their first year. App Store apps using alternative payment processing will pay 20 percent, or 10 percent for developers in those programs. Apps that link out to complete purchases will pay 15 percent, or 10 percent for program members.

For the first time in the EU, developers can offer Apple In-App Purchase alongside alternative payment options, subject to presentation rules. Whatever payment options a developer chooses must stay in place for 12 months.

Child Safety and Marketplace Eligibility

Apps in the Kids category won’t be allowed to link to websites for transactions. For users under 18, App Store apps using alternative payments or link-outs must include a parental gate, and for users under 13, apps can’t link out for transactions at all.

Apple is also widening who can run an alternative app marketplace or distribute apps on the web in the EU. Companies can now qualify by meeting a moderate Dun & Bradstreet financial-stability bar, being publicly traded or owned by a public company, having venture funding from an established firm, completing a financial audit by a licensed accountant, or being a government entity, educational institution or nonprofit.

For developers selling in Europe, the shift from per-install charges to percentage commissions removes the risk of a viral free app generating large fees, and a single set of terms makes it easier to compare App Store, link-out and alternative distribution on cost alone.