Apple and the EU agree on new app store fees and new third-party app store rules

There has been a lot of back and forth, but Apple and the European Commission have finally settled on App Store rules that both sides agree on. Apple is now allowing apps to accept payments through third-party services and it has restructured the App Store fees. Developers in the EU can sign the new terms today and the changes will go into effect on October 1.

Devs can choose to use the Apple In-App Purchase app, alternative payment processing or linking out to a website where the user can complete their purchase. Apps can also use a combination of these three options. Devs have to choose what combo to use and maintain it for 12 months.

There are some exceptions – for example, apps in the Kids category are forbidden from linking to external sites to reduce the risk of scams targeting children. Similarly, users under 13 cannot be sent out to external sites for the same reason. Finally, for users between the ages 13 and 17, apps can use third-party payment processors and external websites, but they must include a parental gate – this means that a parent or guardian must approve the purchase first.

Alright, now here’s the full breakdown of the App Store fees under the new terms:

• For App Store apps using Apple In-App Purchase, the commission will be 26 percent. For the vast majority of developers, including those in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program, and for auto-renewing subscriptions after their first year, it will be 15 percent.
• For App Store apps using alternative payment processing, the commission will be 20 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
• For App Store apps that link out of the app to complete purchases, the commission will be 15 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
• For apps distributed via alternative app marketplaces or the web, Apple will charge a 5 percent Core Technology Commission.

Note that Apple has extended the eligibility rules for companies that want to operate alternative app stores or to distribute apps via the web. These are the rules:

• Meet a moderate financial-stability bar as scored by Dun & Bradstreet.
• Are publicly traded or owned by a publicly traded company.
• Have received venture funding from an established investment firm.
• Have completed a financial audit by a licensed accountant.
• Are a government entity, educational institution, or nonprofit.

Follow the Source link to read about the new EU App Store rules in more detail. You can also read this overview.

PS. A US judge has ordered Apple to change its commission rates in the States. Read more about that here

Source