European iPhone and iPad users can now access and download apps from stores other than the App Store. To ensure the security of downloaded applications, Apple implements a “notarization” process. Developers will now be able to offer alternative payment systems in their apps, bypassing Apple’s in-app purchase system and 30 percent commission. Apple has reduced the commission on most transactions to 17% for developers working with the App Store. Even lower rates are available for smaller developers and subscribers.
The problem is. Apple is introducing a new fee of €0.50 for installing/reinstalling an app, regardless of the download source. The purpose of this fee is to offset potential revenue losses from commission reductions.
Interestingly, Apple still prioritizes its profitable services revenue model. By opening up the ecosystem, new revenue streams are created to offset potential losses. Paying for underlying technology can be a burden for developers, especially those relying on large EU user bases.
In the short term, Apple’s dominance in high-margin services is likely to continue. Developers may find it easier and cheaper to stick with Apple’s ecosystem.
Apple adapts to regulatory pressures while protecting services revenue. The competitive landscape is changing, but Apple is in a “strategically advantageous position” to retain control, experts write.
Source: Ferra
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