Apple has made radical changes to its App Store policies as part of the Digital Markets Act (DMA) that came into force in the European Union. Developers will now be able to provide external links within their apps, direct users to alternative payment systems, and advertise their promotions on external platforms.
EU changes App Store policies
Developers in the EU are now allowed to use multiple external links. These links can be presented with interfaces designed by the developers themselves. Warning screens previously shown to users who clicked on such links can be automatically removed after the first interaction. However, Apple has introduced a new pricing system in return for this new flexibility.
With the system introduced under the name “Core Technology Commission”, Apple will receive a 5% commission for every purchase made outside the App Store. In addition, a “Core Technology Fee” of 0.50 euros per download continues to be charged for apps that exceed 1 million downloads annually.
Apple has also started offering developers two different App Store service models. Developers will be able to determine the plan that is suitable for their apps by choosing one of these two options every three months. The first tier only charges a 5% commission, but App Store features such as automatic updates, search suggestions and performance analytics are disabled.
The second tier allows full use of all App Store services, but in this case, a commission of 13% for large developers and 10% for small businesses. Apple’s move comes after the company was fined 500 million euros by the European Commission in April.
The Commission had found that Apple’s discouraging users from using alternative payment methods and blocking referral options was anti-competitive. Apple appealed the decision on privacy and security grounds, but the Commission found the appeal insufficient.
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