Apple to allow downloads outside App Store in EU, with new fees
From Nasdaq.:
Apple announces plans to allow software developers to distribute apps to EU users outside of Apple’s own App Store. Under the Digital Markets Act, apps compatible with rivals’ apps must be allowed. App developers will be able to offer alternative app stores on iPhones and opt out of using Apple’s in-app payment system starting in March.
The new rules will require developers to submit apps to Apple for review for cybersecurity risks and obvious fraud, as well as paying a core technology fee of 50 euro cents per user account per year. Apple said that only large developers will pay the fee, though it did not specify how many users will trigger the fee.
Spotify and Epic Games have criticized Apple’s intended changes as not legal under the DMA, noting that Apple can still determine which competing stores are allowed. Apple would charge 27% commission on any transactions from clicking links that direct users from an app to third-party websites except in EU.
Starting in March, consumers will see the changes with an update to the iOS operating system. While firms such as Epic and Spotify Technology have been battling Apple’s commissions and restrictions, the tech’s company approach to the App Store has become more receptive to legal and regulatory challenge.
Apple’s charges are as follows: 27% commission on proceeds from links; fees for developers, for example, who opt out of using their payment service and a typical 3% payment processing fee, and a 50 euro cents core technology fee per user account per year. This fee will be waived for the first 1 million user accounts and some organizations.
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