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Apple Overhauls EU App Store Fees and Terms, Replaces Core Technology Fee
Key points
- New EU App Store terms take effect October 1.
- Replaces Core Technology Fee with 5% Core Technology Commission.
- 26% commission for Apple's in-app purchases, 20% for alternative payment systems.
- 15% commission for purchases linking out of the app.
- 5% commission for apps distributed via third-party app stores or web.
New Commission Structure for EU Developers
Apple has announced a new commission structure and unified business terms for app developers in the European Union, set to take effect on October 1. These changes are presented as a resolution to ongoing disagreements with the European Commission concerning business terms and alternative distribution methods.
Under the new model, all developers distributing apps in the EU will operate under a single set of business terms. This update follows previous adjustments to App Store fees in the EU and an investigation by a German antitrust regulator regarding App Tracking Transparency.
Revised Commission Rates
The updated commission rates include a 26% fee for App Store apps utilizing Apple's in-app purchase system. For developers who opt to use alternative payment providers, the commission will be 20%. Additionally, a 15% commission will apply to purchases that link out of the app to complete transactions.
Developers participating in programs such as the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program may see these rates reduced. The new terms also allow developers to offer both in-app purchases and alternative payment systems within the EU.
Core Technology Fee Replaced
A significant change is the replacement of the per-install Core Technology Fee with a 5% Core Technology Commission. This commission will apply to digital transactions in apps distributed outside the App Store, including those offered through third-party app stores or the web. This fee applies to apps that achieve significant scale.
This new commission structure is intended to simplify the previous system, which critics had described as complex and an example of "malicious compliance" with EU regulations.
Context of EU Regulations
These changes represent Apple's latest effort to align its App Store business terms with EU regulations, particularly the Digital Markets Act (DMA). Regulators have previously fined Apple for non-compliance and threatened further penalties.
Historically, Apple charged either 30% or 15% on all iPhone in-app purchases and mandated that all non-enterprise iPhone apps be installed through its App Store. The new terms aim to address the regulatory pressure and provide more flexibility for developers in the EU market.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Apple announced new App Store fee structures for the European Union, including a 5% commission on in-app purchases for apps distributed through third-party app stores. This change aims to resolve ongoing disagreements with EU regulators regarding the Digital Markets Act.
Apple announced new commission structures for apps in the European Union, replacing the per-install Core Technology Fee with a flat 5% commission for apps distributed outside the App Store. These changes are an attempt to comply with EU regulations and simplify previous fee structures that were criticized for complexity.
Apple is overhauling its App Store rules in the European Union, effective October 1st, to address disagreements with the European Commission regarding business terms and alternative distribution. The changes include a unified set of business terms for all developers, new commission rates for in-app purchases and alternative payment systems, and a 5% Core Technology Commission for digital transactions in apps distributed outside the App Store, impacting how developers operate and monetize their apps in the EU.
Apple has introduced new App Store commission rates and terms for developers in the European Union, effective October 1. These changes include a simplified commission structure, reduced rates for alternative payment options, and the replacement of the Core Technology Fee with a Core Technology Commission.