Home » Apple’s Reduction of App Fees within the EU: Unveiling Novel Levies that Reverberate Across Coveted Applications

Apple’s Reduction of App Fees within the EU: Unveiling Novel Levies that Reverberate Across Coveted Applications

Apple has announced a new pricing structure that affects iOS apps for developers in the EU, adhering to the new guidelines set forth by the DMA legislation. These guidelines allow for the creation of separate stores for app downloads and the option to use payment channels outside of Apple’s own.

The changes in store for apps utilizing the App Store channel are as follows: a reduction in fees for Small Business from 15% to 10%, a reduction for high-earning developers from 30% to 17%, and an added 3% fee for choosing to use Apple’s payment channel (Small Business fees will be 13% while larger apps will face 20% fees).

The highlight of this announcement is the introduction of a new fee called the Core Technology Fee. This fee will be imposed on developers if their apps are downloaded over 1 million times within a 12-month period, regardless of whether it’s from Apple’s App Store or external stores. The fee amounts to €0.5 per download, only applying to downloads beyond the initial 1 million.

Apple states that these new fees reflect the value of the tools and technologies they develop. According to evaluations, less than 1% of developers will be affected by the Core Technology Fee.

These new conditions will take effect from March onwards and only apply to developers within the EU. However, developers still have the option to remain on the previous 15/30% fee structure. Additionally, Apple has added cost calculation tools for developers to consider in their decision-making.

TLDR: Apple has unveiled a new pricing structure for developers in the EU, complying with DMA guidelines. Changes include fee reductions for small businesses and high-earning developers, as well as the introduction of the Core Technology Fee for downloads exceeding 1 million. These fees demonstrate the value of Apple’s tools and technologies, but only affect a small percentage of developers. The new conditions will come into effect in March, offering developers the choice to adopt the new structure or stick with the previous fees.

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