Apple Cut Its Standard EU App Store Commission From 30% to 26%
The new terms defuse a two-year fight with Brussels. The money involved is smaller than the headlines suggest.
Overview
On Tuesday, Aug. 18, Apple (NASDAQ:AAPL) announced new business terms for apps in the European Union, cutting its standard App Store commission from 30% to 26% and replacing its most contested fee with a simple 5% commission. Developers can sign the new terms now, and the changes take effect Oct. 1.
The company said the changes follow "close collaboration with the European Commission" and "resolve Apple's disagreements with the Commission over business terms and alternative distribution."
Details
That last part is the news that matters for shareholders. The lower rates will leave more revenue with EU developers. But for Apple, the bigger event is the defusing of a regulatory fight that had already produced a 500 million euro fine and threatened more. Here's a look at the new rates -- and how much money is actually at stake.
Source
Originally published at www.fool.com.