Apple announces new fee structure for apps in the EU that link to the Internet for purchases

Following the EU ruling in June that Apple’s anti-steering policies in the App Store officially violate the Digital Markets Act, Apple is announcing changes. Specifically, these changes affect the rules for app developers who link to the internet to inform users about alternative payment methods.

The new rules remove many of the restrictions Apple previously imposed on how developers could link out, while also introducing another fee structure specific to App Store Link Out use cases.

Previously, Apple had enforced strict rules dictating how apps in the EU could link outward. These included requirements that the link had to be statically defined and lead directly to the app’s own website, without including parameters in the URL to identify the logged-in user. This limited the ability of apps to send users directly to a web page where they could pay to add upgrades to their account.

With today’s changes, all of these restrictions are now gone. Apps can offer actionable links with as many dynamic URLs as they want. These links can take the user anywhere, including to promote other distribution channels such as alternative app marketplaces. The URLs can contain parameters, as long as those parameters are not used for advertising or user profiling.

Previously, it was also necessary to use these links to direct the user from the current app to their web browser (e.g. Safari), but Apple now allows these links to open in the original app as a modal web view.

Apple is also updating the user information sheet with a new, more user-friendly design and includes an interface that will allow users to disable information sheets from appearing when they tap external purchase links in the future. Currently, developers still have to implement this sheet manually, but Apple has announced that it will be managed and displayed automatically External PurchaseCustomLink API in a future iOS update.

In addition, developers can now use these features in the EU without having to agree to alternative terms and conditions, meaning they can stay in the App Store and avoid the Core Technology Fee for installs. However, instead there is a new replacement fee structure…

The new fee structure

Apple is introducing a two-tier fee system for apps that link to a website. There is the initial acquisition fee and the store services fee.

The Initial acquisition fee is a commission on sales of digital goods and services made by a new app user across all platforms where the service offers purchases. This applies for the first 12 months after the first download of the app with the “Link Out” permission.

Over and beyond Store Services Fee is a commission on the sale of digital goods and services, which in turn applies to purchases made on any platform. The Store Services Fee applies within a fixed period of 12 months from the date of installation, update or reinstallation of an app.

This means that the Store service fee will continue to apply if the user continues to use the app, but if the user deletes the app after the 12-month period, Apple will no longer charge a commission.

The two-tier system means that in the first year, the developer pays both the initial acquisition fee and the store services fee for a brand new user. After 12 months, the initial acquisition fee ends and the commission continues to be charged as long as the user continues to use the app.

Please note that the fee only applies to new purchases of digital goods or services. This means that existing subscriptions and their renewals will not incur a fee, provided the app was downloaded after the original purchase.

For example, if the user downloaded the app on their iPhone but later initiated the purchase by independently navigating to the service’s website on another device (such as a Windows PC or Android tablet), the initial acquisition fee and the Store Services fee would still apply. In this case, Apple still wants its share because it considers the iOS app download to be the original factor in the sale conversion.

The new commission rates

The amount of these two new fees varies depending on the developer’s circumstances.

If you are operating under the EU Alternative Terms and Conditions, installations will continue to be subject to the Core Technology Fee. In addition, the following fees will apply:

• Initial acquisition fee: 5%
• Store Services Fee: 10% (reduced to 5% for members of the App Store Small Business Program or a qualifying one-year subscription renewal)

If you continue to offer your app on the App Store under standard terms and conditions, the Core Technology Fee will not apply (and never has), but the associated outbound link commission rates will increase:

• Initial acquisition fee: 5%
• Store Services Fee: 20% (reduced to 7% for members of the App Store Small Business Program or a qualifying one-year subscription renewal)

This creates a complicated matrix of eligibility and fees that developers must carefully review. The new terms are now available to view on Apple’s developer website, including an updated fee calculator.

According to Apple, the new structure will result in lower fees for developers in both the alternative and existing linking terms, especially for existing users. This is because Apple previously charged over 17% and the Core Technology Fee for the privilege of linking with an alternative payment method.