Developer Insights: The Ins and Outs of App Store Regulations

The evolution of app store regulations for developers has been spurred by major legal actions, including the landmark DOJ lawsuit in the US and the Digital Markets Act (DMA) in the EU. It dismantled the traditional control exerted by major platforms, like Google Play Store and Apple’s App store. 

These global mandates are fundamentally challenging the platforms’ role as gatekeepers across all major markets and force developers to adopt a new, complex mandate that balances compliance, security, and monetization strategy.

The Fracturing of the 30% Standard

The most immediate and quantifiable impact of evolution of app store regulations for developers is the disruption of the platforms’ exclusive revenue collection model, which has faced consistent criticism for restricting earnings and impacting app pricing. 

The End of Exclusive IAP

Recent legal rulings in the US and new legislation in the EU have compelled platforms to end policies that strictly prohibited guiding users toward payment systems outside of the main platform. 

This specific evolution of Apple’s app store, originating from anti-steering mandates, grants developers the right to communicate and link to external payment mechanisms. This significant departure from previous prohibitions is limited to specific regions and operating systems, highlighting the new, geographically distinct nature of policy.

The New EU Fee Labyrinth

For developers operating in the EU, compliance with the DMA introduces a complex fee structure that replaces the simplicity of the centralized 30% model. 

Developers choosing to utilize external payment solutions must now navigate tiered commissions on transactions (reduced, for instance, to 10% or 17%). This is combined with a recurring Core Technology Fee (CTF) of €0.50 for every user installation exceeding one million per year.

US vs. Global Fragmentation

Regulatory fragmentation is evident in the US, where the outcome of the Epic Games litigation established a separate commission structure. For external purchases in the US iOS/iPadOS App Store, commissions are set at 12% for small businesses and 27% for others, applicable only if the purchase occurs within 7 days of the user tapping an in-app external link. 

Beyond these major markets, South Korea’s Telecommunications Business Act mandates similar allowance for third-party payment gateways, imposing reduced commission fees of 26% or 27%.

Transparency and Developer Choice

Through evolution of App Store regulations, developers are now faced with a strategic dilemma, whether to retain the platform’s unified payment system or embrace external options. The lower commission percentages offer potential for increased revenue. 

However, they introduce operational complexity, requiring developers to account for out-of-app transactions and submit to audits to ensure fee collection accuracy. It necessitates developers’ agility and informed decision-making to manage fragmented reporting requirements.

An Open Door to Competition and Fragmentation of Sideloading

Beyond payment adjustments, regulatory pressure is fundamentally altering how apps are distributed and move away from a single, mandatory gateway to a more open ecosystem.

1. Regional Implementation (DMA Mandate)

The DMA requires platforms like Apple to permit third-party app stores, alternative payment providers, and direct web distribution (sideloading) within the EU region. This radical action, which faced initial resistance, establishes a competing marketplace environment

2. Opportunity for Developers

This opening allows developers to bypass traditional platform fees and reach audiences through alternative distribution channels such as Amazon Appstore or APK files. The Epic Games vs. Google ruling in the US supports this trend by mandating an end to exclusivity and enabling the distribution of rival app stores within Google Play.

3. The Fragmentation Risk

The rise of alternative stores and sideloading introduces management layers. Developers must contend with compliance, testing, and version control across multiple storefronts, demanding continuous adaptation to a non-unified market

Security and The Changing Responsibility Model

Singular gatekeeper model to a fragmented ecosystem in the evolution of app store regulations places a heavier and more complex burden of security, privacy, and quality assurance directly onto the developer. Yet, there is still room for solutions. 

The Gatekeeper’s Warning

Platforms caution that decentralization compromises the security and integrity of the user experience. Sideloading and third-party distribution channels pose increased risks like malware, fraud, and data exposure, issues previously mitigated by the platform’s curated review process. 

The historical context of a rigorous review process emphasizing security and trustworthiness remains the core value proposition of the centralized store.

The Developer’s New Responsibility

For developers, compliance is now a continuous and strategic mandate.  It moves beyond just avoiding common rejections to proactive risk mitigation through the following steps. 

• Rigorous Performance & Design: avoiding pitfalls like incomplete apps, broken features, or poor user experience, which often leads to rejection. The app must be stable, complete, and offer functionality that exceeds a basic repackaged website.
• Enhanced Privacy & Legal Compliance: strict adherence to data handling requires clear privacy policies and justification for permission requests. Incorporate mandatory in-app account deletion and manage user-generated content (UGC) for community safety.
• Proactive Compliance Management: Given the rapid pace of change, developers must adopt a strategic compliance framework, including  internal audits, continuous policy monitoring, and a designated compliance champion/calendar for ongoing adaptation.

Balancing Ability and Opportunity

The evolution of app store regulations for developers necessitates that studios master a fragmented global landscape of anti-steering rules, variable fees, and the fragmented distribution market. This means that the developer mandate has evolved from simple compliance to complex strategic adaptation. 

Agility, detailed compliance management, and a security-first approach to monetization and distribution are actions that developers must implement to ensure the industry remains fair, secure, and innovative.