Apple unveils new EU business terms from October 1, resolving disputes with the EU, including a new 5% Core Technology Commission and App Store commission tiers
The European Commission’s welcome for Apple’s latest fee reductions indicates that the new structure is meant to close the compliance dispute rather than merely adjust pricing. It also supersedes the previous reduced EU commission structure as the relevant baseline for EU developers.
First-order effects
EU app developers must assess the October 1 terms, including the 5% Core Technology Commission and new App Store commission tiers, when choosing how to monetize and distribute their apps.
Apple gains a Commission-endorsed EU framework for its App Store charges, resolving the disputes cited in the announcement.
Second-order effects
Developers that use alternative payments or link-out offers must recalculate their economics against Apple’s revised tiered charges, rather than treating payment choice as separate from App Store pricing.
Apple’s EU App Store operations must support a more segmented fee structure across in-app purchases, alternative payments, and link-outs, categories reflected in the Commission-welcomed fee changes.
Third-order effects
EU platform regulation is pushing App Store monetization toward channel-specific tariffs, with payment and steering choices becoming part of the regulated commercial model.
If this negotiated model persists, the European Commission’s enforcement process will shape not only what access Apple permits but also how Apple prices that access for developers.
The trend: EU digital-market enforcement is converting platform gatekeeper fees from uniform commissions into regulated, route-specific pricing structures.
Apple announced new junk fees in the EU that do nothing to open up the mobile app ecosystem to competition, as required by Digital Market Act...If the Commission accepts the terms and drops their ongoing enforcement actions, the law will become meaningless and consumers and devel…
Apple has launched a new junk fee structure in EU, mirroring the terms in Brazil and Japan. They're still unlawfully charging for linked-out transactions (clearly prohibited by DMA), and add prohibitions and friction to herd kids into high-junk-fee Apple payments.
Apple forced to restructure ATT “I believe the agreed-upon changes to the ATT prompt...will nudge opt-in rates upward by a non-trivial amount...But I'm skeptical that the US will adopt similar measures, and for that reason, the broader impact on the digital advertising market of …
In good news, though Apple is still violating the DMA by taxing competing stores, it's now a revenue proportionate fee (5%) rather than a price per-download which outright rendered all competition economically unviable. EU citizens deserve better and Epic will fight on.
This sure seems to line up nicely with their proposed link-out fee in the Epic case. Almost as if Apple is teeing up using this proposal for an overall settlement for the US App Store too...
I guess the later is aimed at ensuring most Roblox users can't take advantage of the new terms, and ensuring kids grow up buying things the Apple Junk Fee Way so it's hard for competitors to overcome the lock-in when they grow up. Overall, it's sleazy and unwelcome.
Apple's announcement today for the European Union marks one of the most significant updates to its app distribution model since the Digital Markets Act came into force: …
I will reflect on this further, but I can already say that I find this “deal” between Apple and the European Commission totally unacceptable for multiple reasons. …
This sure seems to line up nicely with their proposed link-out fee in the Epic case. Almost as if Apple is teeing up using this proposal for an overall settlement for the US App Store too... [embedded post]
“Apple's premium valuation is predicated on services, and the App Store is really the crown jewel of that. We think the market is going to reprice the durability of the services business take rate [in the wake of regulatory changes].” www.ft.com/content/e553... [image]
Apple's ‘final’ EU developer terms: you still owe Apple 5% of your revenue even if you distribute your apps in an alternate app store or on the web — https://www.apple.com/...
Apple is changing and simplifying the App store rates for the EU, and have just updated the Apple Developer Program License Agreement. Changes go into effect October 1st.