Apple's New Business Terms for the EU: To Adopt or Not to Adopt?

Within the community of mobile app developers, Apple's recent announcement of new terms of business for the European Union (EU) has generated a great deal of discussion and analysis. Developers should carefully consider these changes, which are mandated by the EU's Digital Markets Act (DMA) and introduce several important updates.

1. Alternative App Stores

The ability to create and use alternate iOS app marketplaces inside the EU is one of the biggest changes. Even though at first glance this seems like a good thing, there are some crucial things to keep in mind:

• Alternative app stores, iOS app notarization, marketplace developer permission, and extra malware protection all require Apple's approval and moderation.

• Apps distributed outside of the App Store will still be subject to App Tracking Transparency (ATT), which will restrict their marketing potential.

• Apps from other stores won't work with App Store features like Ask to Buy and Family Sharing.

2. App Store Third-Party Payment Options

It is now possible for developers to process payments for digital goods and services using various payment service providers (PSPs) inside their apps. However, there are restrictions on features that are exclusive to the App Store and in-app disclosures regarding alternate payment methods.

3. New Business Terms

EU developers must accept new business terms from Apple in order to use these new features. These terms include lower commissions for in-app purchases (IAPs) but also the introduction of a Core Technology Fee (CTF) for apps that receive more than a particular number of first-year installs.

Should Developers Adopt the New Terms?

The following criteria will determine whether these new terms are adopted:

Using alternate app stores and third-party payment methods: Developers may find the new terms advantageous if they intend to continue using Apple's infrastructure and IAPs.
Aspects pertaining to revenue: The new terms are appealing because of the lower commissions and possible cost savings, particularly for apps whose monthly EU revenues are less than $400k.

Flexibility: If necessary, developers can revert to the previous terms, giving them some leeway in gauging the efficacy of the new ones.

In summary

Apple's new EU business terms bring additional considerations and complexities, but they also present chances for flexibility and cost savings. Before determining whether to accept the new terms, developers should carefully evaluate the revenue, payment options, and strategic objectives of their app.


In the end, the decision comes down to weighing the advantages of lower commissions and availability of other payment options against the constraints and demands brought about by Apple's new terms.