Epic Games labels Apple's new fee policy as 'unnecessary'
Apple's new fee structure under the EU Digital Markets Act sparks controversy.
1Apple's new fee structure
Apple announced a new fee structure for app developers in the European Union. Apps using Apple In-App Purchase will face a 26% commission rate, reduced to 15% for qualifying developers and auto-renewing subscriptions after the first year. Apps using alternative payment processing will be charged 20%, or 10% for eligible developers. The new structure aims to simplify previous terms that led to a €500 million fine.
2Commission for web purchases
Apps completing purchases via the web will incur a 15% commission, dropping to 10% for qualifying developers. Apps distributed through alternative marketplaces or the web will pay Apple a 5% 'Core Technology Fee' on digital transactions. This simplified structure follows Apple's €500 million fine for previous non-compliance with EU regulations.
3Epic Games' criticism
Epic Games slammed Apple's new plan as 'junk fees,' arguing it fails to open the mobile app ecosystem to competition as required by the Digital Markets Act (DMA). The company emphasized that the law mandates Apple to allow free web links for purchases and enable 'effective use' of competing app stores.
4Consumer group concerns
The European Consumer Organisation (BEUC) expressed caution about the new fee structure. BEUC's Sébastien Pant noted 'apparent improvements' but questioned whether developers would pass costs to consumers. Pant stressed the need to examine full user flows to assess real consumer benefits, including whether alternative stores can operate without artificial friction.
5Child safety measures
Apple stated it collaborated with the EU Commission on child safety measures for alternative payments, including parental controls and link restrictions in kids' apps. The company continues to promote Apple In-App Purchase as 'the safest way' for users to buy apps and make secure payments, despite regulatory pressures.
6Legal obligations
BEUC's Pant reminded that Apple's changes stem from legal obligations under the DMA, not generosity: 'This is not a gift but an EU law requirement.' He warned that 'the devil is in the detail,' highlighting ongoing scrutiny over implementation. The reforms aim to resolve Apple's long-standing disputes with the EU over fees and distribution.
7Developer reactions
The new fee structure drew mixed reactions from app developers. While some welcomed reduced rates, critics like Epic Games argue the changes remain insufficient. Developers allege Apple still imposes anti-competitive practices, particularly around alternative payment systems and third-party app stores.
8Effective date
Apple's new terms are immediately available for developer acceptance, taking effect on October 1, 2024. These changes seek to resolve Apple's protracted conflicts with the EU Commission over business terms. However, practical impacts on consumers and the app ecosystem remain uncertain, with compliance questions lingering through 2025.