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Alternative payment systems: Apple charges 27% commission

Milan Jovicic by Milan Jovicic
February 4, 2022 - 16:31 CET
in Apple News
0
Alternative payment systems: Apple charges 27% commission

BANGKOK, THAILAND - MARCH 27, 2020: A man holding a phone with screen shot of Tinder on iPhone. Tinder is a geosocial networking and online dating application

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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 "uninformed about purchases" and therefore cannot assist users with "refunds, purchase history, subscription management," etc. Apple also states that a condition of using alternative payment systems is that developers must report their sales—and that Apple reserves the right to audit them. "Failure to pay Apple's commission may result in the proceeds you are owed 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 how this rule applies to a developer with less than one million US dollars in annual revenue, where Apple only charges $1 million. (Photo by twinsterphoto / Bigstockphoto)

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Milan Jovicic

Milan Jovicic

Milan founded Apfelpatient in 2016 and has been responsible for all editorial content since 2018 — news, rumors, guides, and product reviews. Apple devices here are not test units on loan for two weeks but everyday tools: from the iPhone through MacBook Pro, MacBook Air, and iMac to the Apple Vision Pro, at least one device from nearly every product category is in daily use, many of them replaced annually. Every menu path in a guide is verified on the device before it is published.

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