Apple has further revised its compliance plans for the European Union's Digital Markets Act (DMA) rulebook, which since March has required it to give iOS developers more freedom over how they distribute and promote content on the mobile platform.
The iPhone maker is already under investigation by the European Commission for allegedly violating the DMA, a market competition regulation that can impose fines of up to 10% of annual worldwide turnover in case of non-compliance (20% in case of repeat violations).
In June, the EU confirmed it would be directly investigating Apple's new DMA Business Terms fee structure following complaints that the company was trying to circumvent EU rules using “junk fees.” This means that these new amendments to Apple's DMA plan come in the context of its ongoing enforcement. Apple also claims that it has received feedback from developers, which is helping it revise its compliance plan.
The new changes, which Apple made available to developers to preview on Thursday ahead of a general rollout this fall, concern options it is offering developers distributing apps in the EU that allow them to communicate outside offers, such as including links within their apps that redirect users to websites to make purchases.
One of the big changes Apple announced on Thursday is that developers who incorporate Link Out into their apps will no longer need to agree to a new version of its terms of business that would require them to pay a so-called “core technology fee” (CTF) that is under investigation by the EU.
In another notable revision to its approach, Apple is giving developers more flexibility in how they communicate external offers and what types of offers they can promote through their iOS apps. Apple said developers will now be able to let users know about offers that are available anywhere, not just on their own websites, but also in other apps and app marketplaces.
It has also liberalized how developers notify users of these offers, no longer requiring the use of specific language in Apple templates. Apple said it will allow multiple URLs for linking out, including redirects and intermediate links. However, it stipulates that developers must not use URL parameters to track and profile users for ad targeting.
Still, developers can easily direct users to their destination with actionable links, such as link-outs that can be tapped, clicked, or scanned.
In another change, Apple is adding an option for users to opt out of notifications that appear around the link-out when purchasing through an external channel that inform users that the transaction is taking place outside the App Store, although Apple will continue to show these notifications by default unless users opt out.
While Apple calls the notification a disclosure sheet, developers critical of the DMA compliance effort have denounced it as a “scare screen” and argued it is intended to pressure iOS users to stick to the App Store.
Linkout's new pricing structure
In addition to the aforementioned set of changes that give developers more freedom to use Link-Out to send iOS users to external offers, the company is also revising its Link-Out pricing structure through some further unbundling: Two new fees will apply to purchases completed via Link-Out by iOS app users.
Apple has dubbed the first new fee the “Initial Acquisition Fee,” which it says reflects the value the App Store provides in connecting EU developers with customers. The fee will be a 5% commission under both Apple's new terms and its original terms.
The second fee is called the “Store Services Fee,” and according to Apple, it reflects the ongoing services and features it provides to developers, such as app distribution and management, App Store trust and safety (including App Review), rediscovery, re-engagement, promotional tools and services, and app analytics and insights.
This fee will be a standard fee of 10% or a discounted fee of 5% under Apple’s new business terms (such as for developers enrolled in the App Store’s Small Business Program), or a standard fee of 20% and a discounted fee of 7% under Apple’s existing terms.
Apple says the new dual fee structure replaces the reduced fees (10% or 17%) it applied under its new EU business terms.
Under the initial acquisition fee, Apple will receive a 5% commission on sales of digital goods and services made by new app users across all platforms during the first 12 months after their first download of an app with link-out permissions from the App Store.
According to Apple, the fee will not apply to existing iOS app users, but only to new users who download the app through the App Store for the first time.
The store service fee means that for iOS apps with a link-out permissions profile, Apple will receive a 10% commission on sales of digital goods and services made by app users on any platform within a fixed period of 12 months from the date of installation, including any updates or reinstallations of the app.
Apple said it will continue to charge fees to existing iOS users who continue to receive installs of apps with the link-out feature, but it will reduce the fee to 5% for most developers who are enrolled in the App Store's small business program or who sign up for a subscription after one year.
Apple suggests that under both the old and new terms, developers will pay lower fees for links to services offered through the App Store, especially for existing users.