Apple Overhauls EU App Store Fees After €500 Million Fine And Years-Long Fight

After years of sparring with European Union (EU) regulators, a €500 million fine, and criticism over its complex App Store terms, Apple is simplifying its approach.

The irony is hard to miss: its latest attempt at EU compliance is centered on making the rules easier to follow.

Apple is replacing its per-install Core Technology Fee with a 5% commission for apps distributed outside the App Store, while cutting other commissions and easing alternative marketplace requirements.

Apple said the changes follow “close collaboration with the European Commission” and take effect October 1.
 

TL;DR

 

• Apple will replace the Core Technology Fee with a 5% commission for apps distributed through alternative marketplaces or the web.
• App Store commissions will vary based on Apple In-App Purchase, alternative payments, or external links.
• Developers must keep their selected payment setup for 12 months.
• Apple is widening eligibility to operate alternative app marketplaces in the EU.

 

Apple Replaces Its EU Core Technology Fee With A 5% Commission

The biggest change removes the Core Technology Fee, which charged qualifying developers per install, and replaces it with a flat 5% commission on digital goods and services sold through apps distributed outside the App Store. Apple is also eliminating the initial acquisition fee and store services fee.

That older model followed a €500 million fine for noncompliance with the EU’s Digital Markets Act and drew criticism for its complexity, with critics calling it “malicious compliance.” The revision marks another turn in Apple’s years-long back-and-forth with the European Commission over App Store business terms.
 

 

Apple Cuts App Store And Alternative Payment Commissions In The EU

For App Store apps using Apple In-App Purchase, the commission will be 26%, compared with 30% under Apple’s traditional terms. Most developers in the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program, along with qualifying auto-renewing subscriptions after their first year, will continue to pay 15%.

Apps using alternative payment processing will pay 20%, or 10% for developers in those programs. Apps that link users to the web to complete purchases will pay 15%, with a reduced 10% rate for qualifying developers.

Developers can also offer Apple In-App Purchase alongside alternative payment options. Once they choose Apple payments, alternative processing, external links, or a combination, they must maintain that setup for 12 months.
 

 

Apple Loosens Alternative App Marketplace Rules While Keeping Safety Checks

Apple is also lowering barriers for companies that want to operate alternative app marketplaces or distribute apps through the web in the EU. Previously, developers generally had to show major financial backing or meet milestones tied to Developer Program tenure and more than 1 million first annual EU installs.

Under the revised rules, companies can qualify by meeting a Dun & Bradstreet financial-stability threshold, being publicly traded, receiving qualifying venture funding, completing a licensed financial audit, or operating as a government entity, educational institution, or nonprofit.

Apple will still require alternatively distributed apps to pass Notarization. Kids category apps cannot link out for purchases, users under 18 need a parental gate for alternative payments or web transactions, and users under 13 cannot be directed to transaction websites.

Apple may have loosened the EU App Store rulebook, but it has not removed the guardrails. The new model simplifies fees and expands alternative distribution while keeping commissions, 12-month payment commitments, and safety requirements in place.