Following the EU’s June ruling that Apple and the App Store were in violation of the Digital Markets Act, Apple has announced changes to the rules around how app developers can place deep links to inform users of alternative payment methods.
New Link Policies and User Experience
The new rules remove many of the restrictions Apple previously had on how developers were allowed to place links. Apps can now offer live links with dynamic URLs, which can take users anywhere, including to promote other sales channels or alternative app stores. URLs can contain parameters, as long as they’re not used for advertising or user profiling.
Apple now allows these links to open inside the original app as a modal window with WebView. The user disclosure page has been updated with a more user-friendly design and a toggle for users to opt out of seeing the disclosure page when clicking on external purchase links in the future.
Developers can take advantage of these opportunities in the EU without agreeing to alternative business terms, meaning they can remain on the App Store without paying the Core Technology Fee for using core technologies during installation.
New Fee Structure and Rates
Apple is introducing a two-tier fee structure for apps that link to web pages for payment: the Initial Acquisition Fee and the Store Services Fee.
The Initial Acquisition Fee is a commission on sales made by a new user on any platform for the first 12 months after the initial app download. The Store Services Fee is an ongoing commission on sales that applies for a fixed 12-month period from the date of installation, update, or reinstallation of any app.
The fee rates depend on whether developers operate under the EU Alternative Business Terms or standard business terms. For those under EU Alternative Business Terms:
- Initial Acquisition Fee: 5%
- Store Fee: 10% (reduced to 5% for App Store Small Business Program members or upon qualified renewal after one year)
For those under standard business terms:
- Initial Acquisition Fee: 5%
- Store Fee: 20% (reduced to 7% for App Store Small Business Program members or upon qualified renewal after one year)
Apple says the new pricing structure will reduce fees for developers in both alternative and existing linking terms, especially for existing users.
Industry Reactions
The changes have been met with mixed reactions, notes NIX Solutions. Spotify expressed confusion about the new policy but condemned it based on their current understanding. Epic Games CEO Tim Sweeney called the changes another case of “malicious compliance” involving “unwanted fees.”
These new rules and fee structures represent significant changes to the App Store ecosystem in the EU. We’ll keep you updated as more information becomes available and as developers and companies continue to react to these changes.