Apple is today announcing some updates to its Digital Markets Act compliance plan in the European Union, with changes to external linking that give developers more freedom to direct customers to non-App Store purchase options and sales.
EU developers that are operating under the new App Store business terms or the prior App Store purchase terms can update their apps to communicate and promote offers for purchases available through websites, alternative app marketplaces, other apps, and more.
Links to external sources can direct customers outside of the app or to a website with a web view that is available directly in the app. Apple is not directing the design of communications provided to customers, nor is the company dictating what developers are able to say.
Developers can provide information about lower prices outside of the App Store, more affordable subscriptions, or any offer available in or outside the app. External links and offer pages can include explanations and instructions about how customers can subscribe to offers outside of the App Store app, though Apple says that communications have to provide accurate information on the digital goods or services available for purchase.
Links can be tapped, clicked, or scanned to take users to their destination, and developers have no restrictions on the number of URLs they include. Links with additional parameters, redirects, and intermediate links are allowed, but not for ad tracking purposes.
Developers do not have to opt in to the new terms with the Core Technology Fee to take advantage of these link entitlement changes, but must agree to the StoreKit External Purchase Link Entitlement Addendum, which is coming this fall. These terms require developers to use the StoreKit External Purchase APIs, report external purchase transactions, and pay fees and commissions.
There are two fees that are associated with directing customers to purchase options outside of the App Store. A 5 percent initial acquisition fee is paid for all sales of digital goods and services that the customer makes on any platform that occur within a 12-month period after an initial install. The fee does not apply to transactions made by customers that had an initial install before the new link changes, but is applicable for new downloads.
Apple says that the initial acquisition fee reflects the value that the App Store provides when connecting developers with customers in the European Union.
The store services fee, which is in addition to the initial acquisition fee, is a commission that developers pay Apple on all sales of digital goods and services that the customer makes on any platform that occur within a fixed 12-month period from the date of an install, including app updates and reinstalls.
According to Apple, the store services fee reflects the ongoing services and capabilities that Apple provides developers, including app distribution and management, App Store trust and safety, re-discovery, re-engagement and promotional tools and services, anti-fraud checks, recommendations, and ratings and reviews.
While the initial acquisition fee is the same for both developers that use the link entitlement under the new business terms and those that use link entitlements under the current terms, the store services fee varies. For the new business terms, the base fee is 10 percent, but it drops to 5 percent for App Store Small Business Program participants and auto-renewal subscriptions after one year. These fees are in addition to the Core Technology Fee of 0.50 euros per first annual install over one million first annual installs.
For developers who stick with the standard Apple Developer Program License Agreement, the standard store services fee is 20 percent, but it drops to 7 percent for App Store Small Business Program participants and auto-renewal subscriptions after one year. The standard App Store terms do not require a Core Technology Fee. Apple has a fee calculator that can help EU developers figure out what they'll need to pay.
- New business terms - Includes using alternative payment methods in the App Store or distributing outside of the App Store - 5% initial acquisition fee and 5% to 10% store services fee depending on app size, plus Core Technology Fee. Total is 10% to 15% commission, along with the CTF, though Apple estimates that 99% of developers will not be eligible to pay the CTF. There is also a payment processing fee of 3% when using the App Store's payment options.
- Standard business terms - 5% initial acquisition fee and 7% to 20% store services fee depending on app size. Total is 12% to 27% commission.
More information about these changes can be found on Apple's developer website and in the specific Digital Markets Act page that Apple updates regularly.
EU developers can begin planning external linking options for their apps now, and customers will have access to these changes with the launch of iOS 18, iPadOS 18, macOS Sequoia, tvOS 18, visionOS 2, and watchOS 11 this fall.
As with all of the updates that Apple has made to comply with the Digital Markets Act, these changes are only applicable in the European Union. There are no App Store changes in other countries.
Article Link: Apple Loosens App Store External Linking Rules and Changes Fee Structure in European Union
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