Apple has announced a sweeping overhaul of its business terms and commission structures for apps distributed in the European Union, marking a significant pivot in its ongoing efforts to resolve long-standing disagreements with the European Commission. The tech giant revealed a streamlined model designed to replace the controversial per-install Core Technology Fee with a flat 5% commission on digital goods for apps distributed either via the web or through alternative app stores. Alongside this shift, Apple has adjusted its pricing framework for alternative payment processors and its own native in-app purchases, while simultaneously lowering the regulatory barriers for developers seeking to establish independent app marketplaces within the EU single market.
These sweeping adjustments represent the latest chapter in Apple’s protracted struggle to construct an App Store business framework that fully complies with strict European regulations, most notably the Digital Markets Act (DMA). For years, the relationship between Apple and EU antitrust regulators has been characterized by intense friction, regulatory investigations, and heated debates over the complexity and fairness of the fees the company imposes on software developers operating within its ecosystem.
The genesis of this latest policy shift dates back to actions taken by European authorities to enforce the DMA, a landmark piece of legislation aimed at curbing the market power of dominant gatekeeper platforms. Last year, regulatory pressure intensified significantly when the European Commission slapped Apple and Meta with substantial fines—including a €500 million penalty levied against Apple—for failing to comply with key provisions of the competition rules. Facing the prospect of continuous, escalating financial penalties and mounting scrutiny from Brussels, Apple scrambled to update its compliance framework.
However, the subsequent fee structure introduced by Apple in response was met with immediate backlash from developers, industry associations, and consumer advocates alike. Critics forcefully characterized the rollout as an example of "malicious compliance," arguing that the revised terms were deliberately labyrinthine, overly complex, and financially punishing. That previous framework incorporated a confusing array of charges, including an initial acquisition fee, layered store services fees, and a complicated tier-based pricing system that varied wildly depending on the specific operational scale and needs of individual developers.
By replacing that intricate web of charges with the newly announced simplified structure, Apple is attempting to appease both regulators and the developer community. At the heart of the new model is the elimination of the much-maligned Core Technology Fee for certain distributions and the introduction of a straightforward 5% flat commission applied strictly to transactions involving digital goods and services within apps that are distributed completely outside of the traditional App Store environment—either through direct web downloads or alternative app marketplaces.
In addition to shifting its approach toward external distribution, Apple has recalibrated the financial terms governing native transactions processed directly through its own systems. Under the updated guidelines, the standard in-app purchase fee has been adjusted to 26%, down slightly from the traditional 30% rate that has defined the App Store economy for well over a decade. Furthermore, the company emphasized that the vast majority of software developers will continue to qualify for significantly discounted commission rates set at just 15%. This preferential pricing remains accessible through a variety of specialized Apple initiatives, including the App Store Small Business Program, the Mini Apps Partner Program, and the Video Partner Program, as well as for applications featuring auto-renewing subscriptions after they successfully clear their first full year on the platform.
For developers opting to utilize alternative payment processing solutions rather than relying exclusively on Apple’s native infrastructure, the financial terms have similarly been refined. These apps will now be subject to a 20% commission on digital transactions. However, mirroring the structure of Apple’s primary ecosystem programs, this rate drops precipitously to a mere 10% for developers who qualify for and participate in the company’s designated special partner programs.
To ensure stability and predictability within the marketplace under these new terms, Apple has introduced a mandatory lock-in period for participating developers. Once a developer selects their preferred payment processing route—whether they choose to rely entirely on Apple’s in-app purchase mechanisms, integrate external payment options, or deploy a hybrid combination of both—they will be legally and operationally locked into that choice for a solid duration of 12 months before they are permitted to alter their configuration.
The updated rules also introduce nuanced safeguards and specific operational carve-outs, particularly concerning child safety and user protection. While Apple is relaxing its stance to allow certain developers to incorporate external web links directly inside their applications to direct users to alternative payment mechanisms, strict prohibitions remain in place. Specifically, apps categorized under the Kids section are barred from utilizing external links to ensure minors are shielded from potentially unregulated commercial environments. Moreover, the updated framework mandates that users under the age of 18 must secure explicit parental approval before they are allowed to complete any financial transactions outside the secure confines of the official App Store.
Perhaps equally significant for the broader competitive landscape within Europe is Apple’s decision to substantially loosen the administrative and financial requirements governing the establishment of alternative app stores. Under the previous regulatory framework, any developer wishing to launch an independent app marketplace on iOS faced an exceptionally high bar to entry. Apple previously demanded that these entities either prove they possessed massive, substantial financial backing or demonstrate that they had maintained active membership in Apple’s official Developer Program for a minimum of two consecutive years while simultaneously managing an application that had generated more than 1 million first annual installs within the European Union during the previous calendar year.
Under the newly announced guidelines, those rigid milestones are no longer mandatory prerequisites for launching an alternative storefront, though they remain viable pathways for developers who have already achieved them. Instead, Apple has expanded the acceptable criteria by which marketplace creators can demonstrate adequate financial stability and operational viability. The updated policy now officially recognizes alternative forms of financial backing, including public company status, comprehensive financial audits, and qualifying venture capital funding, thereby opening the door for a wider array of competitors to enter the iOS marketplace arena in Europe.
