2 weeks ago
Apple Revises EU App Store Fees as Epic Criticises Terms
Apple is changing the rules and fees for apps in the European Union.
The new rules start on October 1.
Developers may pay Apple different fees depending on how customers buy their digital products.
Some developers will pay less if they qualify for Apple programs.
Apple will also charge a 5 percent commission for certain sales made through other app stores or websites.
Epic Games disagrees with the changes.
Epic says the fees still make it difficult for other payment systems and app stores to compete.
The disagreement is connected to a European law called the Digital Markets Act.
Apple will introduce revised App Store business terms in the European Union from October 1.
The new terms place all EU app developers under a single set of rules.
App Store commissions will range from 10 percent to 26 percent, depending on payment and developer arrangements.
Apple will replace its Core Technology Fee with a 5 percent commission on some digital transactions outside the App Store.
Epic Games called the charges “junk fees” and said they fail to promote competition under the Digital Markets Act.
- Who
- Apple, EU app developers, Epic Games, and European regulators.
- What
- Apple announced revised App Store fees and business terms for the European Union.
- Where
- Across Apple's App Store and alternative app distribution channels in the European Union.
- When
- The revised terms take effect on October 1.
- Why
- The changes follow Apple's prolonged dispute with regulators over compliance with the Digital Markets Act and restructure fees for different distribution and payment methods.
Apple's Position
Epic Games' Position
Purpose of the revised terms
Apple's Position
Apple presented the changes as revised EU business terms that address regulatory concerns and establish one set of rules for developers.
Epic Games' Position
Epic Games said the new charges continue to limit competition in the mobile app ecosystem.
Fees for alternative payment methods
Apple's Position
Apple will allow alternative payment systems but charge a 20 percent commission, reduced to 10 percent for eligible developers.
Epic Games' Position
Epic Games called the commission a “junk fee” and argued that developers should be able to link to web purchases free of charge under the Digital Markets Act.
Compliance with European law
Apple's Position
Apple's changes are part of its response to the Digital Markets Act and the related dispute with regulators.
Epic Games' Position
Epic Games said Apple's terms deliberately violate the Digital Markets Act and warned that accepting them would undermine the law's purpose.
Key facts
- Effective date
- October 1
- Standard App Store commission
- 26 percent when Apple's In-App Purchase system is used
- Reduced App Store commission
- 15 percent for developers covered by Apple's Small Business Program and certain other eligible programs
- Alternative payment commission
- 20 percent, or 10 percent for eligible developers
- External purchase-link commission
- 15 percent, or 10 percent for eligible developers
- Alternative distribution commission
- A 5 percent Core Technology Commission on digital transactions through alternative app marketplaces or the web
- Removed charges
- Apple is removing its initial acquisition fee and store services fee
Quotes
Epic Games
Head of Epic Games, a major video‑game publisher
“Apple's terms deliberately violate the Digital Markets Act. If the Commission accepts the terms and drops their ongoing enforcement actions, the law will become meaningless and consumers and developers will not experience the benefits it was designed to provide.”
freepressjournal.in
Sources
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