Apple has updated its developer license agreement, granting the tech giant new powers to act as a debt collector. The revised terms allow Apple to recoup unpaid commissions, fees, and other dues from developers, primarily by deducting them from in-app purchases processed on their behalf. This significant change particularly impacts developers in regions that permit external payment systems, where they are required to report payments to Apple for commission calculation.
This updated agreement appears to empower Apple to collect what it deems the correct fee, especially if it determines a developer has underreported their earnings from external payment methods.
Apple's policies regarding developer fees are intricate, and this modification will significantly affect developers in markets such as the EU, US, and, now, Japan. In these regions, local laws may mandate varying fees or commissions for developers utilizing external payment systems. Notably, the legality of these commissions remains a point of contention in the U.S., where a federal appeals court recently suggested a district court should consider allowing Apple to collect some commission, though not its full 27% rate.
New Recoupment Mechanisms
In its new developer agreement, Apple explicitly states its right to "offset or recoup" perceived outstanding amounts, including "any amounts collected by Apple on your behalf from end-users." This means Apple can deduct from various sources, such as in-app purchases for digital goods, services, subscriptions, or one-time fees for paid applications.
Furthermore, Apple asserts the right to collect these amounts "at any time" and "from time to time," potentially leading to unexpected deductions for developers if Apple identifies discrepancies in reported earnings. The agreement, however, does not detail the methodology Apple will use to determine these owed amounts.
Payments subject to these changes include commissions, fees, and taxes. A notable example is the Core Technology Fee (CTF) in the EU, currently set at €0.50 for each first annual install exceeding one million within a 12-month period. Starting January 2026, Apple will transition from the CTF to a new fee, called the Core Technology Commission (CTC), a more complex percentage-based fee. Apple will apply the CTC to apps utilizing external payment methods or those distributed under its alternative business terms within the EU.
Beyond individual developer accounts, the updated agreement extends Apple's right to collect unpaid amounts from any "affiliates, parents, or subsidiaries" linked to the indebted account. This implies Apple could recover funds from a developer's other applications or even from apps published by a parent company. These specific modifications are outlined in Schedules 2 and 3, section 3.4, which addresses the delivery of applications to end-users.
Beyond Financials: Other Key Updates
The financial recoupment clauses are not the sole changes in the updated agreement. Apple is also introducing new sections covering age assurance technology, specific terms for iOS apps in Japan, and other requirements.
A notable addition concerns voice-based assistants, such as AI chatbots, activated via the iPhone's side button. Apple now prohibits applications from facilitating recordings (audio, video, or screen) without user awareness. While not an outright ban, the agreement states: "Your Application may not be designed to facilitate Recordings of others without their awareness." The precise interpretation and enforcement of this rule by Apple are yet to be fully understood.
Apple declined to comment on the updates prior to publication.
