Many app developers in Europe are not happy with Apple

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Apple has added a new fee called “store services fee”. As part of this new store policy, developers will have to pay some charges to Apple for the sale of services and digital goods for the first year after users install the app on their iOS devices. Even if users haven’t clicked on any external link, developers will have to pay something to Apple irrespective of where the app was purchased by users.

The new fee was introduced by Apple after the European Union (EU) ruled against Apple for violating the Digital Markets Act (DMA). Apple's response to the European Union's Digital Markets Act (DMA) has drawn criticism from developers. The DMA, which seeks to increase competition by allowing developers to direct users to alternative platforms for purchases, prompted Apple to introduce new rules that enable such actions. However, the company also introduced new fees that developers argue undermine the law's intent.

If you are unaware, starting this fall, developers in the EU will be able to provide links within their iOS apps, allowing users to make purchases outside of Apple's App Store. These links can direct users to alternative app marketplaces, other apps, or websites, where purchases can be made.

However, with the new “store service fee”, Apple will get some cut out of every purchase made by users via third-party app stores or websites. Apple has set the fee at 20% for apps that are available on Apple App Store. However, developers will have to pay a 10% fee for apps available on third-party stores. Apart from this, there’s an additional 5% fee applicable for purchases made within one year of the app’s installation.

Developers have criticised the new fee by Apple

Tim Sweeney, Epic Games founder and CEO, has criticised this move from Apple and called this new fee “malicious” and “illegal” in a post on X.

“In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores”, reads the post.

Apart from this, several other high-profile app developers have criticised this move from Apple. For instance, Spotify’s spokesperson Jeanne Moran has said, “We are currently assessing Apple’s deliberately confusing proposal. Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA."

Apple’s defence

Meanwhile, Apple has defended this fee by saying that the store service fee "reflects the ongoing services and capabilities that Apple provides developers." And the initial acquisition fee reflects the value that App Store provides developers by connecting them with the customers in the European Union.