Apple announced Tuesday it will replace its per-install Core Technology Fee with a flat 5% commission on digital goods sold through apps distributed outside the App Store or via the web in the European Union, marking the tech giant's latest effort to resolve ongoing disputes with the European Commission over its business practices. The overhaul simplifies a fee structure that regulators and developers had criticized as deliberately complicated, following a €500 million fine last year for failing to comply with the EU's Digital Markets Act. Apple also loosened the financial requirements for developers seeking to operate alternative app marketplaces in the region.
Under the revised terms, Apple set its in-app purchase commission at 26%, down from the traditional 30% rate, though most developers will continue to qualify for a discounted 15% fee through programs including the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program, as well as for apps with auto-renewing subscriptions after their first year. Apps that use alternative payment processing will pay a 20% commission, or 10% if they participate in one of the special programs. Developers must commit to their chosen payment method — whether Apple's in-app purchases, external payments, or a combination — for a 12-month period. The company also introduced safety restrictions, blocking external purchase links in apps within the Kids category and requiring parental approval for users under 18 to make purchases outside the App Store.
The changes eliminate Apple's previous requirement that alternative app store operators either demonstrate significant financial backing or prove they had been in the Developer Program for at least two years with an app that achieved more than 1 million first annual installs in the EU during the prior calendar year. Apple now permits developers to show financial stability through multiple pathways, including public company status, financial audits, and qualifying venture capital funding, though meeting the original install milestone remains an option. The previous fee structure included an initial acquisition fee, store services fees, and different service tiers depending on developer needs, which critics labeled "malicious compliance" for its complexity.
The overhaul represents Apple's attempt to create business terms that satisfy EU regulations after years of friction with authorities over whether its policies genuinely open iOS to competition or simply create new barriers disguised as compliance. By flattening the commission structure and removing rigid thresholds for marketplace operators, Apple aims to address regulatory concerns that its earlier response to the Digital Markets Act maintained control through procedural obstacles rather than substantive change. The shift from per-install fees to percentage-based commissions also removes a cost structure that penalized apps with large user bases but lower revenue per user, a point of contention for free or ad-supported applications. Whether regulators view this revision as adequate remains uncertain, but the company's willingness to simplify terms suggests sustained pressure from Brussels is reshaping how Apple monetizes its European app ecosystem. For platform owners navigating similar regulatory scrutiny in other jurisdictions, the lesson may be that incremental adjustments rarely satisfy authorities seeking structural reform.