Apple has recently announced significant changes to its App Store pricing structure and developer proceeds. Effective immediately, a new tax policy will influence developers operating in Brazil, while pricing updates are set to roll out in various regions over the next few months.

Brazil: New Tax for Foreign Developers

Starting May 16, Apple revised its developer proceeds in Brazil due to the implementation of a tax called CIDE (Economic Domain Intervention Contributions). This new 10% levy will apply specifically to developers located outside Brazil, impacting their earnings from both paid applications and in-app purchases (IAP).

Developers who have not designated Brazil as their base storefront in App Store Connect will see their prices automatically adjusted to account for the new tax beginning June 2. Notably, developers with either Brazil or Kazakhstan as their base storefront will not experience any changes in pricing.

Apple emphasizes that these updates will not affect auto-renewable subscriptions. Additionally, the revisions apply only to regions where developers use Apple’s automated pricing system, leaving manually managed price settings untouched.

Europe: Consent Required for Subscription Price Increases

Beginning August 4, Apple will enforce a new consent policy for auto-renewable subscription price increases in Austria, Germany, and Poland. Under this policy, subscribers in these countries must provide explicit consent for any subscription price hike. Subscribers who do not opt-in will see their subscriptions automatically lapse at the end of the current billing cycle.

To ensure users are informed, Apple will issue weekly notifications until action is taken or the subscription terminates. It’s also important to note that any scheduled increases before August 4 will adhere to the current notification guidelines, even if the subscription renews post-policy implementation.

These adjustments reflect Apple’s commitment to maintaining a transparent and user-friendly experience on its platform. Developers and subscribers alike should stay informed about these changes to manage their finances and subscriptions effectively.

Apple Enhances App Store Pricing Policies

Apple has recently announced significant updates to its App Store pricing and developer revenue structure. These changes aim to address regional economic factors and enhance user consent regarding subscription services. The adjustments will first impact developers in Brazil, with further modifications rolling out in Europe and Kazakhstan over the coming months.

New Tax Regulations for Developers in Brazil

Effective May 16, 2024, Apple has implemented a new tax regulation affecting developers operating outside Brazil. The Economic Domain Intervention Contributions (CIDE) levy, set at 10%, will be deducted from earnings generated through paid apps and in-app purchases (IAP). This move ensures that international developers contribute fairly to local economic conditions.

For developers who have not designated Brazil as their base storefront in App Store Connect, prices in the region will autonomously adjust to reflect the newly introduced tax. This automation simplifies compliance for developers while maintaining transparency in pricing for local users.

Adjustments for Kazakhstan Amid Local Economic Changes

In response to fluctuating economic conditions, Apple will also revise pricing for apps in Kazakhstan. Similar to Brazil’s situation, developers that designate Kazakhstan as their base storefront will be exempt from these automatic adjustments. This strategic approach aims to create a balanced environment for developers while considering local market needs.

Subscription Pricing Changes in Europe

Another noteworthy update involves auto-renewable subscription pricing in Europe, particularly affecting Austria, Germany, and Poland. Starting August 4, 2024, users in these countries will need to provide explicit consent for any subscription price increases. This policy ensures that users are fully informed and in control of their subscription costs.

If users do not agree to the updated pricing, their subscriptions will automatically terminate at the end of the current billing cycle. Apple will implement a proactive notification system, reminding users weekly until they either accept the new terms or their subscription concludes.

Impact on Auto-Renewable Subscriptions

It’s important to note that existing auto-renewable subscriptions scheduled for price increases before the August 4 date will continue to operate under current notification policies, even if they renew afterward. This consideration demonstrates Apple’s commitment to a smooth transition for both developers and users during these changes.

Conclusion

Apple’s latest App Store pricing updates underscore its commitment to adapting to global economic landscapes while fostering a transparent ecosystem for users and developers alike. As these changes take effect, both parties can anticipate a more manageable and equitable approach to app monetization and subscription management.