{"id":44414,"date":"2024-08-08T15:24:10","date_gmt":"2024-08-08T19:24:10","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=44414"},"modified":"2025-01-22T13:47:24","modified_gmt":"2025-01-22T18:47:24","slug":"dma-compliance-initial-acquisition-and-store-services-fees","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/08\/08\/dma-compliance-initial-acquisition-and-store-services-fees\/","title":{"rendered":"DMA Compliance: Initial Acquisition and Store Services Fees"},"content":{"rendered":"<p><a href=\"https:\/\/developer.apple.com\/news\/?id=szrqxadx\">Apple<\/a>:<\/p>\n<blockquote cite=\"https:\/\/developer.apple.com\/news\/?id=szrqxadx\">\n<p>We&rsquo;re introducing updated terms that will apply this fall for developers with apps in the European Union storefronts of the App Store that use the StoreKit External Purchase Link Entitlement.<\/p>\n<p>[&#8230;]<\/p>\n<p>Developers can communicate and promote offers for purchases available at a destination of their choice. The destination can be an alternative app marketplace, another app, or a website, and it can be accessed outside the app or via a web view that appears in the app.<\/p>\n<p>[&#8230;]<\/p>\n<p>Developers may design and execute within their apps the communication and promotion of offers. This includes providing information about prices of subscriptions or any other offer available both within or outside the app, and providing explanations or instructions about how to subscribe to offers outside the application.<\/p>\n<p>[&#8230;]<\/p>\n<p>Developers can use any number of URLs, without declaring them in the app&rsquo;s Info.plist.<\/p>\n<p>Links with parameters, redirects, and intermediate links to landing pages are permitted.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/developer.apple.com\/support\/alternative-payment-options-on-the-app-store-in-the-eu\/\">Apple<\/a>:<\/p>\n<blockquote cite=\"https:\/\/developer.apple.com\/support\/alternative-payment-options-on-the-app-store-in-the-eu\/\">\n<p>If your app communicates and promotes offers for end users at a distribution channel of your choice, pay an initial acquisition fee [5%] and an ongoing store services fee [20%].<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/www.macrumors.com\/2024\/08\/08\/app-store-external-links-european-union\/\">Juli Clover<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.macrumors.com\/2024\/08\/08\/app-store-external-links-european-union\/\">\n<p>Developers do not have to opt in to the new terms with the Core Technology Fee to take advantage of these link entitlement changes, but must agree to the StoreKit External Purchase Link Entitlement Addendum, which is coming this fall. These terms require developers to use the StoreKit External Purchase APIs, report external purchase transactions, and pay fees and commissions.<\/p>\n<p>[&#8230;]<\/p>\n<p>There is one other notable change that Apple is making, and that's giving customers an option to turn off in-app disclosure sheets. By default, Apple will still warn users when they are clicking a link that takes them to non-Apple purchase methods and options, but customers can choose to turn off these warnings when an app links to an external channel. An app that links to an in-app web view will only need to display the disclosure sheet once per session.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/9to5mac.com\/2024\/08\/08\/apple-app-store-eu-link-out-changes\/\">Benjamin Mayo<\/a>:<\/p>\n<blockquote cite=\"https:\/\/9to5mac.com\/2024\/08\/08\/apple-app-store-eu-link-out-changes\/\">\n<p>However, for instance, if the user downloaded the app on their iPhone, but then initiated the purchase later that by navigating to the service&rsquo;s website independently on another device (including, say, a Windows PC or Android tablet), the Initial Acquisition Fee and the Store Services Fee would still apply. In that instance, Apple still wants its cut as it sees the download of the iOS app as the originating factor to the sales conversion.<\/p>\n<p>[&#8230;]<\/p>\n<p>This results in a complicated matrix of eligibility and fee costs, that developers will need to carefully evaluate.<\/p>\n<p>[&#8230;]<\/p>\n<p>Apple says the new structure results in lower fees for developers in both the alternative and existing terms for linking out, especially for existing users. This is because previously Apple charged upwards of 17% and the Core Technology Fee, for the privilege of linking out to an alternative payment method.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/x.com\/bzamayo\/status\/1821590971173281845\">Benjamin Mayo<\/a>:<\/p>\n<blockquote cite=\"https:\/\/x.com\/bzamayo\/status\/1821590971173281845\">\n<p>Imagine you are Spotify. You list your app in the EU on the Apple App Store, and link out to your website for payment.<\/p>\n<p>Assuming a new user downloads the iOS app first, you will now be subject to a &gt;20% commission on any new purchases; that includes if the purchase is made later on the web on an Android tablet.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/mastodon.social\/@stroughtonsmith\/112927259785178918\">Steve Troughton-Smith<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mastodon.social\/@stroughtonsmith\/112927259785178918\">\n<p>Here we go again. Fees upon fees upon fees.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/mas.to\/@carnage4life\/112927820064001016\">Dare Obasanjo<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mas.to\/@carnage4life\/112927820064001016\"><p>The interesting dance around Apple&rsquo;s DMA compliance is that it seems clear that the EU wants Apple to stop taxing developers for IAPs while Apple&rsquo;s compliance is to just rebrand the fee and keep the tax.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/mastodon.social\/@iKyle\/112927424139574350\">Kyle Howells<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mastodon.social\/@iKyle\/112927424139574350\"><p>This is insane.<\/p><p>Apple&rsquo;s new rules aren&rsquo;t any better either and aren&rsquo;t going to be allowed either.<\/p><p>They are just dragging this out as long as they possibly can.<\/p><\/blockquote>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/06\/24\/apple-found-in-breach-of-dma\/\">Apple Found in Breach of DMA<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/06\/17\/eu-to-charge-apple-for-violating-dma\/\">EU to Charge Apple for Violating DMA<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/05\/02\/core-technology-fee-exemptions\/\">Core Technology Fee Exemptions<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/03\/20\/dma-compliance-workshop-notarization-and-core-technology-fee\/\">DMA Compliance Workshop: Notarization and Core Technology Fee<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/03\/14\/dma-compliance-custom-external-link-designs\/\">DMA Compliance: Custom External Link Designs<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/01\/26\/dma-compliance-alternative-payments\/\">DMA Compliance: Alternative Payments<\/a><\/li>\n<\/ul>\n\n<p id=\"dma-compliance-initial-acquisition-and-store-services-fees-update-2024-08-09\">Update (2024-08-09): <a href=\"https:\/\/daringfireball.net\/linked\/2024\/08\/08\/apple-eu-new-fee-for-apps-that-link-out\">John Gruber<\/a> (<a href=\"https:\/\/mastodon.social\/@daringfireball\/112929763663182466\">Mastodon<\/a>):<\/p>\n<blockquote cite=\"https:\/\/daringfireball.net\/linked\/2024\/08\/08\/apple-eu-new-fee-for-apps-that-link-out\">\n<p>What many people want is for Apple to just give in, concede, and allow iOS apps in the EU to just collect payments however they want, in-app or through links to the web, freely. Where by <em>freely<\/em> I mean free-of-charge freely. No CTF for downloads, no tracking of purchases made after users tap a link in the app to the web. What Apple wants is to continue making bank from every purchase on digital goods from an iOS app. We&rsquo;re left with a mess where no one is happy with the result.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/spyglass.org\/apple-eu-linking-fees\/\">M.G. Siegler<\/a>:<\/p>\n<blockquote cite=\"https:\/\/spyglass.org\/apple-eu-linking-fees\/\"><p>Wait a minute. What&rsquo;s that? At the bottom. The last bullet point: &ldquo;Updated business terms for apps with the External Purchase Link Entitlement are being introduced to align with the changes to these capabilities.&rdquo; What could that mean? Humorously and fittingly, there&rsquo;s no link. And the link below to &ldquo;learn more&rdquo; about all these changes is broken.<\/p><\/blockquote>\n<p>Yep, I had to guess at <a href=\"https:\/\/developer.apple.com\/support\/alternative-payment-options-on-the-app-store-in-the-eu\/\">the link<\/a> I quoted above.<\/p>\n<blockquote cite=\"https:\/\/spyglass.org\/apple-eu-linking-fees\/\"><p>Apple, of course, will note that they&rsquo;re okay with the changes they&rsquo;re offering but have the right to be compensated for their IP and infrastructure usage. And that will be hard to argue with, legally, if nothing else. But you can&rsquo;t help but feel that this is getting so impenetrable that it&rsquo;s almost like Apple is doing it this way on purpose.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/pxlnv.com\/linklog\/app-store-services-fees\/\">Nick Heer<\/a>:<\/p>\n<blockquote cite=\"https:\/\/pxlnv.com\/linklog\/app-store-services-fees\/\">\n<p>I am not sure what business standards apply here and whether it is completely outlandish, but it sure feels that way. The App Store certainly helps with app discovery to some degree, and Apple does provide a lot of services whether developers want them or not. Yet this basically ties part of a developer&rsquo;s entire revenue stream to Apple; the part is unknown but will be determined based on whichever customers used the iPhone version of an app first.<\/p>\n<p>[&#8230;]<\/p>\n<p>None of these changes applies to external purchases in the U.S., for example. But <a href=\"https:\/\/pxlnv.com\/linklog\/us-storekit-entitlement\/\">what I wrote at the time<\/a> applies here just the same: it is championing this bureaucracy because it believes it is entitled to a significant finder&rsquo;s fee, regardless of its actual contribution to a customer&rsquo;s purchase.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/birchtree.me\/blog\/you-thought-that-was-good-news-sucker\/\">Matt Birchler<\/a>:<\/p>\n<blockquote cite=\"https:\/\/birchtree.me\/blog\/you-thought-that-was-good-news-sucker\/\">\n<p>Two, sometimes I propose some new feature I want Apple to implement, and there&rsquo;s a weird vibe from some people who seem to think I expect Apple to implement that feature badly. Of course I would want them to do it well&#8230;that&rsquo;s like the entire reason we use Apple&rsquo;s stuff, right? Well, this DMA behavior is exactly what those people are thinking about: Apple is implementing features as poorly as they can so that people hate them.<\/p>\n<p>[&#8230;]<\/p>\n<p>Anyway, this is all really annoying and I wish they would treat these required changes the way they&rsquo;ve treated things like adopting USB-C or RCS where they do them well and lean into how they make their users&rsquo; lives better. This whole affair looks so petty.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/www.macrumors.com\/2024\/08\/08\/epic-games-spotify-apple-dma-changes\/\">Juli Clover<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.macrumors.com\/2024\/08\/08\/epic-games-spotify-apple-dma-changes\/\"><p>Spotify likewise didn&rsquo;t have anything nice to say about the updated link rules. In a statement to <a href=\"https:\/\/techcrunch.com\/2024\/08\/08\/spotify-and-epic-games-call-apples-revised-dma-compliance-plan-confusing-illegal-and-unacceptable\/\">TechCrunch<\/a>, Spotify said the revisions are &ldquo;deliberately confusing,&rdquo; but &ldquo;at first glance,&rdquo; Apple is continuing to &ldquo;blatantly disregard&rdquo; the requirements of the DMA.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/mastodon.social\/@lapcatsoftware\/112932434728373416\">Jeff Johnson<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mastodon.social\/@lapcatsoftware\/112932434728373416\"><p>Developer tools are not charity. Apple platforms would never have achieved their current success without 3rd party software.<\/p><p>[&#8230;]<\/p><p>Apple monetized its IP to the tune of $60 billion in hardware sales last quarter.<\/p><p>[&#8230;]<\/p><p>Rogue Amoeba&rsquo;s Airfoil sold countless Airport Express units for Apple. Did we get a cut of that? Hell no. Of course not. And that&rsquo;s fine. Apple sold its hardware, and Rogue Amoeba sold its software for Apple&rsquo;s hardware.<\/p><p>That was the mutually beneficial relationship between Apple and developers since 1977. But it all changed in 2008, when Apple greedily decided that it wanted to double dip: increased 1st party hardware sales from 3rd party software and ALSO a cut of that software revenue.<\/p><\/blockquote>\n\n<p><a href=\"https:\/\/mathstodon.xyz\/@taatm\/112933277394719779\">The Animal and the Machine<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mathstodon.xyz\/@taatm\/112933277394719779\">\n<p>I&rsquo;ve started a hammer business. I&rsquo;ve sold the hammers but I expect to be very rich now as I&rsquo;ve deployed the Apple business model where I collect a third of the revenue from every builder and crafter.<\/p>\n<\/blockquote>\n\n<p>We are <a href=\"https:\/\/mjtsai.com\/blog\/2020\/08\/25\/potential\/\">so lucky<\/a> that the Web was invented before the App Store.<\/p>\n\n<p id=\"dma-compliance-initial-acquisition-and-store-services-fees-update-2024-08-13\">Update (2024-08-13): <a href=\"https:\/\/9to5mac.com\/2024\/08\/12\/app-store-linking-out-eu-vs-google-play\/\">Chance Miller<\/a>:<\/p>\n<blockquote cite=\"https:\/\/9to5mac.com\/2024\/08\/12\/app-store-linking-out-eu-vs-google-play\/\">\n<p>It&rsquo;ll be interesting to see how the European Commission responds to Apple&rsquo;s latest changes in the EU, given that Google and Apple&rsquo;s terms are more similar than ever before.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/mastodon.social\/@stroughtonsmith\/112951153713923321\">Steve Troughton-Smith<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mastodon.social\/@stroughtonsmith\/112951153713923321\"><p>It&rsquo;s almost like the two duopolists are colluding on pricing.<\/p><\/blockquote>\n\n<p id=\"dma-compliance-initial-acquisition-and-store-services-fees-update-2024-08-14\">Update (2024-08-14): <a href=\"https:\/\/www.theverge.com\/2024\/8\/9\/24216181\/apple-eu-app-store-services-fee-external-links\">Emma Roth<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.theverge.com\/2024\/8\/9\/24216181\/apple-eu-app-store-services-fee-external-links\">\n<p>But using the feature comes with fees so steep that it&rsquo;s hard to imagine any developer using it.<\/p>\n<p>[&#8230;]<\/p>\n<p>Apple&rsquo;s latest changes offer some improvements, but they come with the same caveats that make it more difficult for developers to do business.<\/p>\n<\/blockquote>\n\n<p id=\"dma-compliance-initial-acquisition-and-store-services-fees-update-2024-08-15\">Update (2024-08-15): <a href=\"https:\/\/joe-steel.com\/2024-08-14-Apples-Just-Fines.html\">Joe Rosensteel<\/a>:<\/p>\n<blockquote cite=\"https:\/\/joe-steel.com\/2024-08-14-Apples-Just-Fines.html\">\n<p>The part I&rsquo;ll never understand is the assumption that the App Store is the reason a developer, or corporation, was able to <em>acquire<\/em> a sale. The days of people browsing the App Store are long gone. People hear about, or encounter ads for, apps and services in the real world or online and then have to download the app. The App Store serves as a hosting venue for static code. It&rsquo;s <a href=\"https:\/\/www.tucows.com\/news\/tucows-retires-seminal-tucows-downloads-site\">Tucows<\/a>. It&rsquo;s not <em>doing<\/em> anything.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"<p>Apple: We&rsquo;re introducing updated terms that will apply this fall for developers with apps in the European Union storefronts of the App Store that use the StoreKit External Purchase Link Entitlement. [&#8230;] Developers can communicate and promote offers for purchases available at a destination of their choice. The destination can be an alternative app marketplace, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2024-08-08T19:24:13Z","apple_news_api_id":"f9bd0525-7122-469d-8272-61702ef4deb3","apple_news_api_modified_at":"2025-01-22T18:47:28Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAABw==","apple_news_api_share_url":"https:\/\/apple.news\/A-b0FJXEiRp2CcmFwLvTesw","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[2085,2542,91,101,2570,1927,31,2321,1227],"class_list":["post-44414","post","type-post","status-publish","format-standard","hentry","category-technology","tag-antitrust","tag-app-marketplaces","tag-appstore","tag-business","tag-digital-markets-act-dma","tag-european-union","tag-ios","tag-ios-17","tag-top-posts"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/44414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=44414"}],"version-history":[{"count":9,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/44414\/revisions"}],"predecessor-version":[{"id":46493,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/44414\/revisions\/46493"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=44414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=44414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=44414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}