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Issue link: https://digital.macdirectory.com/i/1515807
Changes to the App Store On the App Store, Apple is sharing a number of changes for developers with apps in the EU, affecting apps across Apple’s operating systems — including iOS, iPadOS, macOS, watchOS, and tvOS. The changes also include new disclosures informing EU users of the risks associated with using alternatives to the App Store’s secure payment processing. For developers, those changes include: • New options for using payment service providers (PSPs) — within a developer’s app to process payments for digital goods and services. • New options for processing payments via link-out — where users can complete a transaction for digital goods and services on the developer’s external website. Developers can also inform EU users of promotions, discounts, and other deals available outside of their apps. • Business planning tools — for developers to estimate fees and understand metrics associated with Apple’s new business terms for apps in the EU. The changes also include new steps to protect and inform EU users, including: • App Store product page labels — that inform users when an app they’re downloading uses alternative payment processing. • In-app disclosure sheets — that let users know when they are no longer transacting with Apple, and when a developer is directing them to transact using an alternative payment processor. • New App Review processes — to verify that developers accurately communicate information about transactions that use alternative payment processors. • Expanded data portability on Apple’s Data & Privacy site — where EU users can retrieve new data about their usage of the App Store and export it to an authorized third party. For apps that use alternative payment processing, Apple will not be able to issue refunds, and will have less ability to support customers encountering issues, scams, or fraud. Helpful App Store features — like Report a Problem, Family Sharing, and Ask to Buy — will also not reflect these transactions. Users may have to share their payment information with additional parties, creating more opportunities for bad actors to steal sensitive financial information. And on the App Store, users’ purchase history and subscription management will only reflect transactions made using the App Store’s In-App Purchase system. New Business Terms for Apps in the EU Also today, Apple is sharing new business terms available for developers’ apps in the European Union. Developers can choose to adopt these new business terms, or stay on Apple’s existing terms. Developers must adopt the new business terms for EU apps to use the new capabilities for alternative distribution or alternative payment processing. The new business terms for apps in the EU are necessary to support the DMA’s requirements for alternative distribution and payment processing. That includes a fee structure that reflects the many ways Apple creates value for developers’ businesses — including distribution and discovery on the App Store, the App Store’s secure payment processing, Apple’s trusted and secure mobile platform, and all the tools and technology to build and share innovative apps with users around the world. Developers operating under either set of business terms can continue to use the App Store’s secure payment processing and share their apps on the App Store in the EU. And both sets of business terms reflect Apple’s long-standing work to make the app ecosystem the best opportunity for all developers. Developers operating under the new business terms will have the option to distribute their iOS apps from the App Store and/or alternative app marketplaces. These developers can also choose to use alternative payment processors in their EU apps on the App Store, across Apple’s operating systems. The new business terms for iOS apps in the EU have three elements: • Reduced commission — iOS apps on the App Store will pay a reduced commission of either 10 percent (for the vast majority of developers, and subscriptions following their first year) or 17 percent on transactions for digital goods and services. • Payment processing fee — iOS apps on the App Store can use the App Store’s payment processing for an additional 3 percent fee. Developers can use a payment service provider within their app or link users to their website to process payments for no additional fee to Apple. • Core Technology Fee — iOS apps distributed from the App Store and/or an alternative app marketplace will pay €0.50 for each first annual install per year over a 1 million threshold. For apps on iPadOS, macOS, watchOS, and tvOS in the EU, developers who process payments using a PSP or by linking out to their website will get a 3 percent discount on the commission they owe to Apple. Apple is also sharing a fee calculator tool and new reports to help developers estimate the potential impact of the new business terms on their app businesses. Developers can learn more about the changes for EU apps on a new Apple Developer Support page and can begin testing these capabilities today in the iOS 17.4 beta.