Understanding Apple’s DMA Rules: A Guide for App Developers on Key Regulations and Requirements

The article discusses Apple’s response to the European Union’s (EU) Digital Markets Act (DMA), which aims to regulate large tech companies’ market power. In response, Apple is introducing new "core tech" fees for apps in the EU, starting from March 2024. Here are some key points about the new terms:

1. Core Tech Fee: Apple will charge a fee based on the app’s total net revenue per year (TNR), which includes all revenue generated by the app, including sales, subscriptions, and in-app purchases.
2. Revenue Tiers: The core tech fee will be tiered, with different rates applying to apps that generate different levels of revenue:
   • 0-€1 million: 10% TNR
   • €1 million-€10 million: 15% TNR
   • €10 million+: 20% TNR
3. Commissions: Apple will retain its standard commission rates for in-app purchases (IAP) and other transactions.
4. New Reporting Tools: Developers will have access to new reports in App Store Connect, including metrics on engagement, commerce, app usage, and frameworks usage.
5. Data Sharing: Developers can choose to share their app store data with alternative app marketplace developers and third parties, including exporting the full history of their app’s engagement, commerce, and usage.
6. Switching Terms: Developers who adopt Apple’s new EU business terms at any time will never be able to switch back to Apple’s existing business terms for their EU apps.
7. Impact on Developers: The core tech fee may affect developers who earn low revenue or have high marketing costs, as they may need to adjust their pricing strategies.

The article also highlights that:

1. Existing Terms Remain: Developers can still choose between the existing terms available today (e.g., commission structure) or the new terms.
2. iOS 17.4 and Xcode 15.3 Beta: The changes won’t become available to Apple users in the EU until March, when iOS 17.4 is released, along with a beta release of Xcode 15.3.

Overall, Apple’s introduction of the core tech fee aims to comply with the EU’s DMA regulations while maintaining its revenue streams from app developers in the region.