In a significant development, Apple has announced that developers will now incur a 20% processing fee for purchases made via the App Store. However, for those participating in Apple’s small-business program, this fee can be reduced to as low as 13%. This change is part of Apple's efforts to comply with the European Union's Digital Markets Act and avoid hefty daily fines.
Developers who choose to direct customers to payment options outside the App Store will face a minimum fee of 5%, with the maximum fee capped at 15%. Additionally, Apple is allowing developers to utilize multiple links to facilitate external payment forms. These adjustments aim to provide developers with more flexibility while navigating the evolving landscape of digital transactions.
The recent fee changes are crucial for Apple as the company seeks to prevent incurring daily fines that could reach 5% of its average daily worldwide revenue, translating to approximately 50 million euros (or about $58 million) each day. This mandate comes after the EU provided Apple with a 60-day compliance window to align its practices with the Digital Markets Act.
Earlier this year, Apple faced a 500 million euro (around $580 million) fine imposed by EU antitrust regulators, highlighting the urgency for compliance. The European Commission has confirmed that it will review Apple’s recent changes to assess their compliance with the Digital Markets Act. It is essential for the Commission to gather insights from market operators and other interested parties as part of this evaluation process.
Tim Sweeney, CEO of Epic Games, publicly criticized Apple’s recent adjustments, labeling them as a mockery of fair competition within digital markets. He emphasized that apps with competing payment systems are not only subjected to fees but are also significantly disadvantaged within the App Store ecosystem. Apple has not yet responded to Sweeney’s comments, which underscore the ongoing tension between the tech giant and developers advocating for fairer practices.
As the situation continues to evolve, all eyes will be on the European Commission's next steps in this complex regulatory landscape. Apple's commitment to adjusting its App Store policies marks a pivotal moment in the ongoing dialogue surrounding digital market fairness and competition.
