Apple on Tuesday unveiled a significantly simplified commission structure for apps distributed in the European Union, replacing its per-install Core Technology Fee with a flat 5% commission on transactions from apps sold outside the App Store. The move is the latest effort to resolve a long-running standoff with the European Commission over whether the company’s business terms comply with the Digital Markets Act (DMA).
The revised terms, which apply to apps distributed through alternative app marketplaces or directly on the web, mark a sharp departure from the tiered system Apple introduced last year. That earlier structure — which included an acquisition fee, store services fees, and multiple service tiers — drew widespread criticism from developers and regulators, who accused Apple of “malicious compliance” with the DMA.
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What Changes Under the New EU Fee Structure
The headline change is the elimination of the Core Technology Fee, a per-install charge that had been a major point of contention. In its place, Apple will now charge a flat 5% commission on all transactions processed through apps distributed outside the App Store. For apps that remain within the App Store, the in-app purchase commission drops to 26%, down from the traditional 30% rate.
Most developers will still qualify for a reduced 15% fee through existing programs such as the App Store Small Business Program, the Mini Apps Partner Program, and the Video Partner Program. Apps with auto-renewing subscriptions also drop to the 15% rate after the first year, Apple said.
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For developers who choose to use alternative payment processing, the commission will be 20%, falling to 10% for those in the special programs. However, Apple noted that developers will be locked into their chosen payment method for 12 months, whether they use Apple’s in-app purchases, external payments, or a combination.
Looser Rules for Alternative App Stores
Apple also relaxed the eligibility requirements for developers who want to operate an alternative app store in the EU. Previously, a developer had to either demonstrate significant financial backing or show that they had been in Apple’s Developer Program for at least two years and had an app with more than 1 million first annual installs in the EU in the previous calendar year.
Under the new rules, the requirement to be a large iOS developer has been scrapped. Instead, Apple now accepts a broader range of financial stability indicators, including public company status, financial audits, qualifying venture capital funding, and other means of demonstrating backing. This change is expected to open the door for smaller developers and startups to launch their own app marketplaces.
Safety and Parental Controls
The new terms also introduce specific safety measures. Developers who are allowed to use external links inside their apps will be barred from doing so in apps in the Kids category, citing safety concerns. Additionally, users under 18 years old will need parental approval before making purchases outside the App Store.
Why This Matters for Developers and Regulators
The announcement comes after years of back-and-forth between Apple and the European Commission. In 2025, regulators fined Apple €500 million for noncompliance with the DMA and threatened further penalties. Apple’s previous attempt to adjust its fees was seen by many as overly complex and punitive, prompting the Commission to push for clearer terms.
Industry analysts view the new flat-rate model as a pragmatic compromise that could reduce regulatory friction while still preserving Apple’s revenue from EU app sales. For developers, the simplified structure lowers the barrier to entry for alternative distribution and may encourage more experimentation with third-party app stores.
The changes will take effect immediately for all apps distributed in the EU, and Apple has indicated that it will continue to engage with the Commission on any remaining concerns. Whether this revision satisfies regulators remains an open question, but the move signals a willingness to adapt its business model to the region’s legal framework.
As the EU continues to enforce the DMA, other tech giants are watching closely. Apple’s willingness to overhaul its fee structure could set a precedent for how large platforms negotiate compliance with European digital regulations.
