Apple Changes EU App Store Fees, Replacing Per-Install Charge With 5% Commission
The Facts
- Apple announced new business terms for European Union app developers on Tuesday, taking effect October 1.
- Apple will replace its per-install Core Technology Fee with a 5 percent Core Technology Commission on digital transactions.
- The 5 percent commission applies to apps distributed outside the App Store, via alternative marketplaces or the web.
- Apps sold in the App Store using Apple's payment system will be charged a 26 percent commission in the EU.
- App Store apps that use alternative payment processing will be charged a 20 percent commission.
- Apple's standard commission on digital purchases outside the EU is up to 30 percent.
- All developers distributing apps in the EU will be moved to a single set of business terms.
- Developers may choose between the App Store, third-party app stores or the web as distribution channels.
- The European Commission fined Apple 500 million euros in April 2025 for violating the Digital Markets Act.
- The Commission welcomed the changes and said it will monitor how the new terms are implemented.
- Apple says the new terms resolve its disagreements with the Commission over business terms and alternative distribution.
Context
What was the Core Technology Fee, and why did regulators object to it?
The Core Technology Fee was a charge levied on developers based on app installations above a certain threshold, applied to apps distributed outside the App Store Il Sole 24 ORE,El Periódico. EU regulators criticized it, along with Apple's other conditions, saying the fees discouraged developers from using alternative distribution channels on iOS Reuters,Cash,newsORF.at.
What is the Digital Markets Act and why does it apply to Apple?
The Digital Markets Act is the EU law regulating large online platforms and is intended to ensure fair competition in digital markets Vienna Online,uol.com.br. Apple is designated a "gatekeeper" under the rules, meaning its services are considered an important gateway to consumers, which subjects it to additional obligations alongside companies such as Alphabet and Amazon Vienna Online.
What happens next?
Developers can sign the new terms starting immediately, with the rates taking effect October 1 EL MUNDO. The Commission said it welcomes the changes but will closely watch their actual implementation Vienna Online,infobae, a step that for now averts the risk of further fines while keeping Apple under scrutiny Hindu,BFMTV.
Where Left and Right agree, and where they split
- Where Left and Right agree
- Apple still names every number — 5, 20 or 26 percent — and it lowered them below its 30 percent global rate only after regulatory pressure opened alternative distribution channels.
- Where Left and Right split
- Whether the story is about one company retaining the power to set the toll, or about developers gaining exits that let them price Apple's rails against rivals.
How left and right read it
When a single company sets the toll on every app people use, the terms it "chooses" to soften are still terms it dictates — and that is the power imbalance worth watching. Apple is dropping the per-install fee for a 5 percent commission and cutting its in-house payment rate to 26 percent, below the 30 percent it charges elsewhere, because regulators forced the question. Smaller developers still pay whichever number Apple names. Who sets that number next?
“Regulators have said Apple uses the digital marketplace to crush competition, and developers have complained about the company's high fees and strict rules.” — The New York Times
A developer's real leverage is the door out, not a rulebook of approved prices. That door is now open in the EU — apps can be distributed through the App Store, a rival marketplace or the web, and routing payments outside Apple costs 20 percent instead of 26 — so developers can finally price Apple's rails against the alternatives. Guard those exits, and stop there.
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