Apple To Charge “Core Technology Fee” From Developers, Announces Major App Store Changes،
In September 2023, the European Union declared Apple as one of the guardians. Under the DMA, the EU ordered the company to make changes to its App Store to enable sideloading of apps and allow third-party payments. The deadline for Apple, as well as other companies, is March 7, 2024. However, on January 25, 2024, Apple has already responded to the guidelines.
iOS 17.4 beta to include all upcoming changes
On Thursday, Apple announced the beta version of iOS 17.4, which contains necessary changes for developers as per the DMA's directive.
- New options for distributing iOS apps from alternative app marketplaces, including new APIs and tools for developers to offer their iOS apps from alternative app marketplaces.
- A new framework and APIs for creating alternative app marketplaces will allow marketplace developers to install apps and manage updates from their dedicated marketplace app on behalf of other developers.
- iOS 17.4 will allow developers to use browser engines other than WebKit for browser apps and apps with an in-app browsing experience.
- Developers can also submit additional requests for interoperability with iPhone and iOS hardware and software features.
Steps to Mitigate Security and Privacy Risks for Users
In the official press release, Apple mentions that the changes create new risks for users and their devices, which the company cannot eliminate. However, the company has taken the following steps to reduce risks within the constraints of DMA.
- Notarization (automated and human review) for iOS apps: A basic review that applies to all apps, regardless of their distribution channel.
- App installation sheets, which provide a quick description of apps and their features before downloading.
- Authorization granted to marketplace developers to ensure marketplace developers commit to ongoing requirements.
- Additional protections against malware that prevent iOS apps from opening on users' devices after installation.
Safari to open on a screen of choice
As per DMA requirements, Apple has also added a new choice screen that will appear when users open Safari in iOS 17.4 for the first time. The screen will prompt users to choose a default browser from a list of available options. Apple mentions that the change “interrupts the experience for EU users the first time they open Safari with the intention of navigating to a web page”, indicating the company's dissatisfaction with the guidelines.
Here are the changes coming to the App Store
- New options for using payment service providers within an application.
- New options for processing payments through the developer's external website, outside of the App Store. Developers can also notify EU users about promotions, discounts and other offers on their portals outside of apps.
- Business planning tools to help developers estimate fees related to Apple's new business terms.
The company will not provide after-sales services for apps that do not use Apple's payment processing, such as issuing refunds or resolving issues or fraud.
Apple will charge base technology fees for apps distributed through an alternative marketplace
Apple has announced new trading terms for developers in the European Union, who can choose to adopt the new terms or stick with existing ones. However, side loading is only available with the new conditions.
- iOS apps on the App Store will pay a reduced commission of 10% or 17% on digital goods and services transactions.
- iOS apps can use App Store payment processing for an additional three percent fee. However, developers can use a payment service provider within their app or link users to an external website at no additional cost. For applications on iPadOS, macOS, watchOS and tvOS, developers using a PSP will benefit from a 3% reduction on Apple's commission.
- iOS apps distributed from or outside the App Store will pay EUR 0.50 “for each first annual install above a threshold of one million”.
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