Latest news with #CoreTechnologyCommission
GSM Arena
4 hours ago
- Business
- GSM Arena
Apple announces App Store policy changes in the EU
Apple announced major updates to its App Store policies in the European Union yesterday under the Digital Markets Act (DMA) including new app distribution for EU-based developers and a new two-tier system for Store Services fees on purchases made outside of apps. EU devs are now free to advertise in-app offers for digital goods and services via external websites, other apps, and alternative app marketplaces. Developers can also include multiple URL destinations inside their apps with redirects and tracking. Apple's notorious scare screens, which users see when they tap an external link, can now be turned off after the first interaction within apps. Developers can also design their own interfaces for links to outside payments and promotions. Apple is also bringing a new Core Technology Commission which mandates 5% commission on outside App Store purchases made for apps distributed on the App Store. Apple is also retaining its Core Technology Fee (CTF), which charges €0.50 per download for each annual install over 1 million. There's also a new initial acquisition fee which adds a 2% fee on digital goods and services purchases outside of the App Store by new users in the first six months following an app download. Alongside those changes, Apple is introducing a new two-tier system for Store Services fees. Developers will be able to move between the two tiers on a per-app basis once per quarter. Tier 1 offers developers a lowered 5% commission on in-app purchases but severely limits key features like automatic app updates, automatic app downloads, search suggestions, ratings and performance metrics. Tier 2 asks for a higher 13% commission (10% for Small Business Program members) with developers getting access to all key features provided by the App Store for their apps Epic Games CEO Tim Sweeney criticized Apple's new approach, calling the new Tier 1 list a 'mockery of fair competition' and 'unlawful'. Apple's new Digital Markets Act malicious compliance scheme is blatantly unlawful in both Europe and the United States and makes a mockery of fair competition in digital markets. Apps with competing payments are not only taxed but commercially crippled in the App Store.… — Tim Sweeney (@TimSweeneyEpic) June 26, 2025 So, how did we get here? Back in April, the European Commission (EC) issued a preliminary fine worth €500 million over Apple's continued anti-competitive App Store practices including steering and preventing users from using alternative payment platforms all of which were in violation of the DMA. Apple later appealed the decision on a privacy basis, but that was not enough for the EC. The Commission will now evaluate Apple's new policies affect consumers under the DMA. Source
Time of India
7 hours ago
- Business
- Time of India
Apple introduces new App Store fees in EU to avoid €500 million fine
Apple has introduced sweeping changes to its European Union App Store policies, introducing a complicated multi-tier fee system aimed at avoiding crushing daily fines that could reach €50 million under the bloc's Digital Markets Act (DMA). The company now allows EU developers to freely link customers to alternative payment methods outside the App Store without restrictive warning screens or mandatory text. However, these freedoms come with new costs through Apple's revamped commission structure. New fee framework creates multiple payment tiers Under the updated system, developers face up to three separate fees for a single app download. Apple introduced a " Core Technology Commission " of 5% on all digital purchases made outside the App Store, alongside an initial acquisition fee of 2% and variable store services fees ranging from 5% to 13%. The company also created a two-tier service structure. Tier 1 offers basic features like app reviews and fraud protection for a 5% commission, while Tier 2 provides full App Store benefits including automatic updates, marketing tools, and app insights for 13%. Small Business Program participants receive reduced rates. Apps using external payment links will pay the Core Technology Commission, while those merely referencing outside deals continue under the existing Core Technology Fee of €0.50 per download after one million installs. Regulatory standoff continues despite changes Apple's modifications follow a €500 million fine imposed in April for violating DMA anti-steering rules. The European Commission threatened additional daily penalties worth up to 5% of Apple's global revenue if the company failed to comply by June 26. "We disagree with this outcome and plan to appeal," Apple stated, maintaining its opposition to the regulatory requirements. Epic Games CEO Tim Sweeney, whose company successfully challenged Apple's US steering policies, criticized the changes as "malicious compliance" that commercially cripples competing payment systems. The European Commission will now assess whether Apple's proposals achieve genuine DMA compliance before determining if additional fines are warranted. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Engadget
19 hours ago
- Business
- Engadget
Apple details new fee structures for App Store payments in the EU
Apple has introduced new fee structures for developers using the App Store in the EU in order to meet the requirements of the bloc's Digital Markets Act. Last month, the European Commission ruled that Apple was not in compliance the legislation and ordered the company to make changes within 30 days. Apple can still file an appeal of the decision until July 7. The new terms make things a little complicated. When apps promote offers for digital goods or services in the EU, they'll be subject to an "initial acquisition fee" and a "store services fee" as well as a Core Technology Fee for apps with more than 1 million annual installs. Developers who agree to the StoreKit External Purchase Link Entitlement (EU) Addendum will be charged a Core Technology Commission (CTC) of 5 percent rather than the CTF. The CTC applies to "all sales of digital goods or services that occur within a 12-month period from the date of an install, including app updates and reinstalls" rather than the CTF approach based on installation numbers. The exact rules and exemptions are now listed on a dedicated support page. There are also two separate tiers of fee structures. Tier 1 is for apps using mandatory store services and Tier 2 covers apps using optional store services. The initial acquisition fee is 2 percent for both tiers, although participants in the Apple Small Business Program and recurring subscriptions after the first year will not be subject to that charge. The Tier 1 store services fee is 5 percent, while Tier 2 is 13 percent normally or 10 percent for program participants. That's the approach for the remainder of this year, although Apple said it plans to adopt a single business model of the Core Technology Commission for all developers in the EU beginning January 1, 2026. Apple is also offering new terms about how developers can promote and communicate offers to users in the EU. The destination for a promo can now be "a website, alternative app marketplace, or another app, and can be accessed outside the app or within the app via a web view or native experience." The company is also toning down language in the "scare sheets" it displays when a user follows a link to outside the App Store.
