To comply with new EU competition rules, Apple had to revise the conditions for developers again. iOS apps that offer external purchase options will soon have more freedom: providers and developers will in the future be able to name prices for subscriptions that are taken out on the web or other platforms, as the company announced on Thursday. Such references and links were strictly forbidden for a long time. Apple is also eliminating the warnings that appeared when users tapped on such links to external purchase options in apps.
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Brussels dissatisfied with Apple’s DMA compliance
The group is reacting to Brussels’ latest competition allegations: in June, the EU Commission reached a preliminary conclusion that Apple was violating the requirements of the Digital Markets Act with certain developer rules. According to the Commission, in order to create more competition, it should be possible for app providers and developers to freely point their customers to other sales channels.
At the same time, Apple is adamant about making money from all digital content and service purchases made from apps. To this end, the group has once again come up with new fees for developers, including an “initial acquisition fee” and a “store service fee.” Both come into force as soon as the purchase is made within a 12-month period within the EU – outside of apps. For sales of “digital goods or services”, app providers must – depending on the model and size – pay Apple between 10 and 25 percent of their sales.
There is also the sometimes controversial “core technology fee”. The latter is already being investigated in another inquiry by the EU Commission. The group lists the small print of the new terms on its developer page.This also means that developers don’t have to switch to the new terms with core technology fees to be able to link purchasing options to their apps.
The big fight for Apple’s commission
However, Apple’s commission is only slightly lower than the previously estimated amount of 30 percent. According to EU regulators, this would go “far beyond” what is actually fair. It remains to be seen whether Apple’s new fee model will be considered fair. Apple already earns more revenue from services, including commissions from the app business, than from sales of Macs, iPads and wearables (Apple Watch, AirPods, Vision Pro) combined. In addition, services have significantly higher margins than hardware sales.
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