Apple announced unified App Store commission terms for developers in the European Union on Tuesday, cutting alternative marketplace fees to a flat 5% Core Technology Commission. The new structure, effective October 1, replaces the multi-fee system EU regulators criticized under the Digital Markets Act.
Key Points
- Apple will charge a 5% Core Technology Commission on apps distributed through alternative marketplaces or the web in the EU, starting October 1.
- App Store apps using Apple’s in-app purchase system face a 26% commission, dropping to 15% for small businesses, second-year subscriptions, and approved partner programs.
- Developers using alternative payment processing inside the App Store will pay 20%, or 10% under the same reduced-rate programs.
- Apple removed the separate initial acquisition fee and store services fee that applied under its prior EU fee system.
- The European Commission said it welcomes the changes and will monitor how Apple carries them out.
Apple Sets New Commission Rates for EU App Distribution
Apple said in a newsroom statement that it is introducing a single set of business terms for developers distributing apps in the EU, mirroring the commission-based approach it already uses in Japan and Brazil. The rates depend on how a developer processes payments, not just where the app is distributed.
Apps that keep Apple’s in-app purchase system pay 26%, or 15% for developers in the App Store Small Business Program, the Mini Apps Partner Program, or the Video Partner Program, and for subscriptions renewing after their first year. Apps that link out of the app to complete a purchase pay 15%, or 10% under those same programs. Reuters reported the changes take effect October 1 and are meant to resolve Apple’s standing disagreements with the European Commission over Digital Markets Act compliance.
Apple has agreed to a set of sweeping changes for its App Store in Europe, including dropping per-install fees for developers who don’t use the iPhone marketplace, to resolve a dispute with the European Union over competition concerns https://t.co/wWI14Cx6cp
— Bloomberg (@business) August 18, 2026
Alternative Marketplaces Get Lower Fees and Wider Access
The 5% Core Technology Commission applies to any app distributed outside the App Store, whether through a rival marketplace or a direct web download. Apple said this single rate replaces the initial acquisition fee and store services fee it had charged under the fee system introduced last year.
Apple also widened who can qualify to operate an alternative marketplace or distribute apps via the web. A developer now qualifies by meeting a moderate financial stability score from Dun & Bradstreet, being publicly traded or owned by a publicly traded company, having received venture funding from an established investment firm, having completed a financial audit by a licensed accountant, or by being a government entity, educational institution, or nonprofit. That list replaces stricter criteria that the European Commission had said discouraged developers from using alternative distribution channels on iOS.
Child Safety Rules Apply to Alternative Payment Links
Apple added specific limits for younger users alongside the fee changes. Apps in the Kids category will not include links to outside websites to complete transactions, a step Apple said is meant “to reduce the risk of fraud or scams targeting children.“
Users under 18 who use apps with alternative payment processing or external purchase links must pass through a parental gate requiring a parent or guardian’s involvement before buying anything. For users under 13, the App Store rules go further: apps cannot link out to a website for transactions at all.
The Push From Brussels
The European Commission ordered Apple last year to drop commercial barriers that regulators said blocked developers from directing customers to purchase options outside the App Store, under the bloc’s Digital Markets Act. Apple changed its EU App Store rules and fees in 2025 in response, but regulators continued to object to elements of that system, including the Core Technology Fee, arguing it discouraged developers from using alternative app marketplaces on Apple’s iOS.
Apple’s dispute with regulators over developer fees is not confined to the EU. The company is still litigating how much it can charge developers in the United States, a case involving Epic Games where a federal judge ruled in April 2025 that Apple had violated a prior court order, and where an appeals court partly reversed related sanctions in December 2025.
SQ Magazine’s Takeaway
Apple’s shift to a flat 5% Core Technology Commission removes the fee structure regulators pointed to as the main obstacle to alternative app distribution in the EU, replacing per-install and per-transaction charges with one rate tied to revenue. Combined with the wider eligibility criteria for operating a marketplace, the changes make it more realistic for a broader set of companies, not just the largest developers, to run a rival storefront or distribute directly through the web.
Developers already selling apps in the EU should review which of the four commission tiers applies to their current setup before October 1, since the App Store’s default in-app purchase terms carry the highest rates on this new schedule. The European Commission has said it will monitor implementation, meaning further adjustments are possible if regulators find gaps between Apple’s stated terms and how they work in practice. Apple’s parallel fight over U.S. developer fees remains unresolved, so companies operating in both markets may still face different rules on each side of the Atlantic through at least the next round of appeals.
