Categories: Technology

Apple Company Cuts EU Alternative App Commission to 5%

Apple announces new EU commission rules for apps distributed outside its App Store.

Apple will charge a 5% commission on digital transactions involving apps distributed outside its App Store in the European Union.

The company announced the change on Tuesday. It aims to bring its business terms into line with the EU’s Digital Markets Act.

Under the new system, Apple will charge a 5% Core Technology Commission for apps distributed through alternative marketplaces or directly through the web.

Apps that remain on the App Store but use alternative payment systems will face a 20% commission. However, developers in Apple’s small business programme could pay 10%.

New Fee Structure

The revised system will remove Apple’s initial acquisition and store services fees. The changes will take effect on October 1.

Apple said the new terms will provide one framework for developers operating across the EU. Similar commission-based arrangements already exist in markets such as Japan and Brazil.

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The company previously changed its EU App Store rules after regulators raised concerns about restrictions on alternative payment and distribution options.

EU Welcomes Changes

The European Commission welcomed Apple’s announcement. However, it said officials would monitor how the new rules work in practice.

EU regulators had criticised Apple’s previous Core Technology Fee. They argued that the charge could discourage developers from using alternative app distribution channels.

Meanwhile, Apple continues to face pressure over its App Store business model. Developers have historically paid commissions of up to 30% on digital goods and services.

Epic Games Criticises Apple

Epic Games, the maker of Fortnite, criticised the new fee structure. The company has fought Apple in a long-running dispute over App Store policies and commissions.

Epic called the new 5% charge a “junk fee”. It also argued that the changes do not do enough to create competition in the mobile app market.

Apple continues to face legal challenges over App Store fees in the United States. At the same time, several countries are pushing for greater competition in mobile app distribution.

Irfan