Apple has unveiled its new business terms for apps that will be distributed in the European Union, marking a significant change in the company’s approach to in-app transactions. The new policies, which take effect starting October 1, will see the company’s heavily debated Core Technology Fee replaced with a new Core Technology Commission that will be applied to in-app purchases.

Source: engadget.com

The new commission rates are designed to comply with the Digital Markets Act (DMA), a set of regulations aimed at promoting competition in the digital market. Apple has been involved in a long-standing legal battle with the European Union over its App Store policies, and the new commission rates are a key part of the company’s efforts to conform to the DMA.

New Commission Rates

The new commission rates will be applied as follows:

• For developers that participate in the App Store Small Business Program, the Mini Apps Partner Program, and the Video Partner Program, the commission rate will be 15% for in-app purchases made using Apple In-App Purchase technology.
• For developers outside these programs, the commission rate will be 26% for in-app purchases made using Apple In-App Purchase technology.
• For App Store apps that use alternative tools for payment processing, the commission rate will be 20% for in-app purchases.
• For App Store apps that link out of the app to complete purchases, the commission rate will be 15% for in-app purchases.
• For program members using either of these paths, the commission rate will be 10% for in-app purchases.
• For apps that are distributed outside Apple’s App Store, the commission rate will be a flat 5% for in-app purchases.

The new commission rates are designed to provide a clearer and more transparent pricing structure for developers, while also ensuring that Apple’s App Store policies comply with the DMA.

Background on the Digital Markets Act

The Digital Markets Act is a set of regulations aimed at promoting competition in the digital market. The act requires large tech companies, including Apple, to make significant changes to their business practices in order to comply with the regulations.

Apple has been involved in a long-standing legal battle with the European Union over its App Store policies, and the new commission rates are a key part of the company’s efforts to conform to the DMA. The company has faced criticism from developers and regulators over its App Store policies, which have been seen as restrictive and anti-competitive.

In a statement, Apple said that the new commission rates are designed to provide a clearer and more transparent pricing structure for developers, while also ensuring that Apple’s App Store policies comply with the DMA.