Apple Adjusts EU App Store Business Terms Following Developer Feedback

With the rollout of iOS 17.4, Apple has implemented changes in its app ecosystem to comply with new regulations in the European Union. Apple revised its terms of service in response to feedback from developers, introducing last-minute updates to address their concerns.

In order to distribute their apps through an app marketplace with reduced fees or alternative payment options, developers are required to opt in to the new business terms. These terms now include the Core Technology Fee and other pricing mandates introduced by Apple. This shift marks a significant change in how developers engage with Apple’s app ecosystem in the European Union. Initially, Apple didn’t offer developers the ability to try the new system and then opt out if it didn’t work for them. However, a one-time term swap option is now available in certain circumstances.

Developers have a one-time option to terminate the new rule addendum and revert to Apple’s standard business terms, but there are specific conditions attached to this option. Developers choosing to return to Apple’s standard business terms must not have previously distributed an app through an alternative app marketplace or employed an alternative payment processing method.

This provision is part of the one-time option Apple offers, allowing developers to terminate the new rule addendum and return to the company’s standard business terms. Developers seeking to switch back must not have distributed an app through an alternative app marketplace or employed an alternative payment processing method.

Developers continuing to distribute their apps through the App Store while adopting the Core Technology Fee and reduced commission option can opt-out. The Core Technology Fee is €0.50 per download after 1 million downloads, and the commission is 13 percent for small business owners and 20 percent for installs over 1 million (including the ‌App Store‌ payment processing fee).

The removal of the previous requirement for a stand-by letter of credit for €1,000,000 now gives developers the flexibility to create alternative app marketplaces without this financial constraint. This change broadens the scope, enabling a more diverse range of developers, not just large companies, to explore and engage in the creation of alternative app marketplaces within the Apple ecosystem.

Developers who fulfill the criteria of being in good standing with the Apple Developer Program for a minimum of two consecutive years and having an app that garnered over one million first annual installs in iOS in the European Union during the prior calendar year are now excused from the requirement of presenting proof of funds when establishing an alternative app marketplace.

By exempting experienced developers from the requirement of providing proof of funds when creating an alternative app marketplace, this exemption streamlines the process. It provides a more accessible avenue for these developers to explore and engage in the creation of alternative marketplaces within the Apple ecosystem.

With the latest changes, there is no longer a requirement for a corporate entity when signing up for new terms. Large businesses can sign up at the developer account level, simplifying the process and eliminating the need for each controlling membership to approve the transition to the updated business terms.