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Follow US
App StoreAppleiPhoneMobileTech

Apple slaps EU developers with massive 20% fee

Apple's App Store becomes more expensive for developers as the company introduces a 20% fee on all digital sales.

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...
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Aug 9, 2024, 3:32 PM EDT
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Apple App Store app on an iPhone.
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Apple has announced new changes to its App Store policies in compliance with the European Union’s Digital Markets Act (DMA). While the company is granting developers more flexibility in directing users to external purchase options, a newly introduced fee structure is raising concerns among app developers.

Effective this fall, EU-based developers will be able to include links within their apps to external platforms for purchases. This change, while seemingly beneficial, is accompanied by a complex fee system that could significantly impact developer revenue.

Apple has implemented a “store services fee” of 20% for apps exclusively offered on the App Store and a 10% fee for apps supporting third-party app stores. This fee applies to digital goods and services purchased within one year of a user installing the app, regardless of the platform where the purchase is made. Additionally, a 5% “initial acquisition fee” will be imposed on digital goods and services purchased within the first year of app installation.

These combined fees could result in a maximum commission of 25% for Apple on purchases made within a year of app installation, including off-platform subscriptions and auto-renewals. While exceptions exist for small business programs and certain subscription models, the overall impact on developers’ profitability is substantial.

The new fee structure has drawn criticism from industry leaders, with concerns that it could stifle competition and hinder the development of alternative app stores. Apple maintains that the fees reflect the value provided to developers by the App Store platform.


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