Apple Revises EU App Store Fees With New 5% Commission for Outside Distribution
Apple has introduced a new App Store fee structure in the European Union as it continues trying to align its business model with the region’s Digital Markets Act. The latest changes simplify several parts of Apple’s developer terms and replace one of the most controversial fees with a flat commission on certain digital transactions.
Under the updated model, Apple is removing the per-install Core Technology Fee for apps distributed outside the App Store. In its place, the company will charge a 5% commission on digital goods and services sold through apps distributed via alternative app marketplaces or directly through the web.
The move is Apple’s latest attempt to address concerns from EU regulators and developers, many of whom argued that the company’s previous system was too complicated and difficult to navigate. Apple had already revised its EU App Store policies after facing regulatory pressure and a major fine tied to compliance with the Digital Markets Act, but critics continued to challenge the structure and fairness of its fees.
The new approach is designed to be easier to understand. Developers who distribute apps outside Apple’s App Store will now face a straightforward 5% commission on qualifying digital transactions, rather than dealing with a per-install charge that could become costly for high-growth apps.
Apple is also adjusting fees for developers who continue to use its own in-app purchase system. Under the new EU terms, Apple’s in-app purchase commission will be 26%, down from the traditional 30% rate. However, many developers will still be eligible for reduced rates. Apps that qualify under programs such as the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program may pay 15% instead. The same discounted rate can also apply to auto-renewing subscriptions after the first year.
For developers that choose alternative payment processing, Apple will charge a 20% commission. Developers in qualifying programs will pay a lower 10% rate when using outside payment systems.
Another important detail is that developers must commit to their chosen payment setup for 12 months. This applies whether they use Apple’s in-app purchase system, external payment options, or a combination of both. The rule appears intended to give Apple more stability in managing its marketplace terms while giving developers clearer expectations around long-term costs.
Apple is also placing limits on how external purchases can work for younger users. Apps in the Kids category will not be allowed to include external purchase links. In addition, users under 18 will need parental approval before completing purchases outside the App Store. Apple says these restrictions are aimed at preserving safety protections for minors.
Beyond payment changes, Apple is loosening the requirements for developers that want to operate alternative app stores in the EU. Previously, companies had to meet strict conditions, such as showing significant financial backing or proving they had been part of Apple’s Developer Program for at least two years with an app that reached more than 1 million first annual installs in the EU during the prior calendar year.
Those milestones are no longer the only path forward. Apple will now allow developers to demonstrate financial stability in other ways, including public company status, financial audits, qualifying venture capital funding, and other proof of backing. This could make it easier for more companies to launch alternative app marketplaces for iPhone users in Europe.
The changes are significant because the EU’s Digital Markets Act is designed to open up major digital platforms and reduce the control large technology companies have over app distribution, payments, and user choice. Apple has long argued that its App Store model protects privacy, security, and user trust, while regulators and some developers have said the company’s rules limit competition.
With this latest update, Apple appears to be trying to strike a balance. The company is keeping commissions in place for digital transactions, but it is simplifying the fee structure and giving developers more flexibility around app distribution, payment processing, and marketplace operations.
For iPhone users in the European Union, the changes may eventually lead to more app stores, more payment options, and broader access to apps outside Apple’s traditional marketplace. For developers, the new terms could make it easier to compare the costs of staying inside the App Store versus distributing apps through alternative channels.
Whether the European Commission views Apple’s new fee structure as fully compliant remains to be seen. However, the shift from a per-install fee to a flat 5% commission marks one of Apple’s clearest attempts yet to respond to ongoing concerns over App Store rules in Europe.
