Apple changes App Store fees in Europe after long legal battle, Epic Games reacts

HIGHLIGHTS

Apple has announced changes to its App Store business terms in EU.

The new rules will apply from October 1.

Epic Games has criticised Apple and called the new charges "junk fees."

Apple has announced changes to its App Store business terms in the European Union after a long dispute tied to the EU’s Digital Markets Act. The new rules will apply from October 1 and will put all developers distributing apps in the EU under one set of terms. Apple is also changing how it charges developers for apps and digital purchases. The Core Technology Fee will be replaced by a 5 per cent Core Technology Commission for apps distributed outside the App Store. Epic Games has criticised the changes. The company says Apple is still charging fees that limit competition and do not follow the Digital Markets Act.

Apple announces changes to EU App Store fees

Under the new terms, Apple will change its commission rates for apps and digital purchases in the EU. For apps on the App Store that use Apple’s In-App Purchase system, the standard commission will be 26 per cent. However, many developers will pay 15 per cent, including those in Apple’s Small Business Program and some other programmes.

Developers using alternative payment systems will pay a 20 per cent commission. The rate will be 10 per cent for developers covered by Apple’s programmes. Apple will charge a 15 per cent commission when an App Store app links users to out of the app to complete a purchase. The reduced rate for eligible developers will be 10 per cent. For apps distributed through alternative app marketplaces or the web, Apple will charge a 5 per cent Core Technology Commission on digital transactions. The company is also removing the initial acquisition fee and store services fee.

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Epic Games reacts to the changes

Epic Games has criticised Apple’s new terms. In a post on X, the company called the new charges “junk fees” that “do nothing to open up the mobile app ecosystem to competition.”

Epic pointed to Apple’s 20 per cent fee for alternative payment systems, 15 per cent fee for links to external purchases and 5 per cent Core Technology Commission.

The company said the EU’s Digital Markets Act requires Apple to let developers link to the web for purchases “free of charge”. Epic also argued that Apple must allow “effective use” of competing app stores.

“Apple’s terms deliberately violate the Digital Markets Act. If the Commission accepts the terms and drops their ongoing enforcement actions, the law will become meaningless and consumers and developers will not experience the benefits it was designed to provide,” Epic Games said.

Also read: OpenAI pauses some AI training after Hugging Face incident, strengthens safeguards for advanced models

Ayushi Jain

Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS.

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