TECH
Apple forced to reduce app commission under EU law
March 13, 2024 - The EU’s new Digital Markets Act (DMA) forces Apple to reduce its commission on app revenue, and allows the use of alternative app marketplaces and payment methods.
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Apple has capitulated in its fight to protect the dominance of its App Store on iPhones and iPads in Europe, telling developers they are now free to distribute their apps directly to consumers in that region, if they want to.
The changes comply with the EU’s new Digital Markets Act (DMA), which will dent the high profit margins of up to 30% that Apple has come to rely on from its walled-in App store.
Developers must still meet terms and conditions set by Apple, like being an authorised developer, but will now be charged less for every sale they make – or even nothing if they completely circumvent the official Apple App Store.