Apple updated business terms in the EU: App Store link-outs and external promotions now permitted

Apple has recently announced significant updates to its business terms for developers within the European Union, marking a notable shift in how companies can promote and link to their offerings outside the App Store ecosystem. Starting with the release of iOS 18 and iPadOS 18, developers operating under Apple’s new or existing business agreements will have more freedom to communicate and promote purchases that are available outside of the App Store.

The Commission had noted that, under the majority of Apple’s business terms, developers are permitted to steer customers solely through “link-outs.” This means that within their apps, developers can incorporate a link that directs users to an external webpage where they can finalize a transaction.

Under the new terms, developers in the EU can now direct users to a variety of external destinations, including alternative app marketplaces, other apps, or websites. These destinations can be accessed either directly from within the app or via a web view that is embedded in the app itself. This change allows developers to inform users about subscription pricing, special promotions, and other offers that are available outside the confines of the App Store. Essentially, developers can now guide users to more options and potentially better deals without being restricted to Apple’s ecosystem.

While the new terms provide greater flexibility, they also introduce revised fee structures for developers. Developers who opt to use the link-out feature to direct users to external platforms for digital goods or services will be subject to a 5% revenue share, referred to as an ‘initial acquisition fee.’ This fee applies to all sales made to a customer on any platform within a 12-month period after their initial app install. However, it is important to note that this fee is only applicable to new users.

For those developers who adopt Apple’s new business terms, an additional ‘store services fee’ will be imposed, with a 10% commission for most developers and a reduced 5% rate for small businesses. Developers who choose to stick with Apple’s existing terms will face a 20% fee on link-out sales, though this rate drops to 7% for small businesses and for subscriptions that have been active for over a year. These fees are designed to cover the wide range of services that Apple provides, including app distribution, review, and management, as well as customer support and promotional tools.