On Tuesday, Apple announced a revised commission structure for third-party app stores in the European Union, implementing a 5% fee on in-app purchases. This change is part of Apple's efforts to comply with the EU's Digital Markets Act, which mandates that major tech companies, referred to as 'gatekeepers,' allow third-party app stores.
The new fee tiers, effective October 1, include a 26% commission for apps using Apple's payment system, a 20% fee for those using their own payment processing, and a 15% fee for apps that direct users to external websites for purchases.
Apple has faced criticism and regulatory challenges globally regarding its App Store practices, which many argue create a monopoly and impose high fees on developers. The company has historically charged either 30% or 15% on in-app purchases, but this new structure aims to simplify the previous, more complex proposal.
Apple claims that its App Store policies enhance security and trust, but it has been under pressure from regulators and has incurred fines for non-compliance. The changes also come as Apple reported slower growth in its Services division, which includes App Store revenue, with CFO Kevan Parekh noting factors such as declining mobile gaming impacting performance.
This overhaul may help Apple mitigate regulatory friction in Europe while adapting to a changing market landscape