Following changes to the App Store to comply with Dutch law, Apple has announced that the company will reduce its 30% commission on eligible apps to 27%.
Apple is continuing to fight the Dutch order that says the company must allow dating app developers to offer alternative payment methods. However, the company is complying with the order and has now announced its fees after first explaining how developers can use third-party systems. According to a updated Support document:
Apple charges a commission of EUR 271,000 on the price paid by the user, less VAT. This is a reduced rate that excludes the value for payment processing and related activities. Developers are responsible for collecting and remitting any applicable taxes, such as Dutch VAT on sales processed by a third-party payment provider.
Apple explains condition for the use of alternative payment systems
In a new, additional document titled "Additional details for dating apps in the Netherlands," Apple says it will appeal the Dutch ruling and encourages developers to continue working with the App Store as they have done so far.
Dating app developers who wish to continue using Apple's in-app purchasing system, which we believe is the safest way to purchase digital goods and services, can do so and no further action is required.
If a developer switches to an alternative system, Apple is "not informed of the purchases" and therefore cannot help users with "refunds, purchase history, subscription management," etc. Apple also explains that a condition of using alternative payment systems is that developers must report their sales - and that Apple has the right to audit them. "Failure to pay Apple's commission may result in the proceeds you are entitled to being offset in other markets." It also threatens "removal of the app from the App Store or exclusion from the Apple Developer Program." It remains unclear to what extent this rule applies to a developer who makes less than one million US dollars in annual revenue, where Apple only charges $151%. (Photo by twinsterphoto / Bigstockphoto)
