Apple Overhauls European App Store Fee Structure Following EU Digital Markets Act Settlement

Apple has restructured its European Union App Store fee model and developer guidelines to settle an ongoing regulatory conflict with the European Commission under the Digital Markets Act, according to reporting first published by The Next Web. The Cupertino-based technology giant unveiled the updated terms on Tuesday following discussions with European Union officials. Developers are permitted to sign the updated business terms immediately, with the new fee framework officially taking effect on Oct. 1. Apple stated that the policy shift establishes a unified commercial framework across the region, noting that the updates resolve past disagreements with regulators regarding alternative software distribution and commercial terms.

The primary operational change is the elimination of the Core Technology Fee, which previously levied a per-install charge on software creators who distributed applications outside Apple's native App Store. In its place, Apple has introduced a 5% Core Technology Commission assessed on digital transactions. The company is also removing both its initial acquisition fee and its store services fee. Under the updated structure, the standard commission for developers using Apple's proprietary In-App Purchase system drops from the baseline 30% rate to 26%, a reduction highlighted by Bloomberg. That rate decreases to 15% for participants in Apple's Small Business, Mini Apps, or Video Partner programs, as well as for recurring subscriptions beyond their first year.

Apple is also recalibrating commission rates across alternative sales channels. Software developers that integrate third-party payment processing directly inside their iOS applications will pay a 20% commission, or 10% if they qualify for small business programs. Applications that route consumers to external websites to complete purchases will be subject to a 15% fee, which drops to 10% for program participants. Software distributed through alternative application marketplaces or direct website downloads will incur only the 5% Core Technology Commission. According to reporting from Reuters, these updated European terms mirror commission models Apple currently maintains in Japan and Brazil.

Under the new framework, developers in the European Union can offer Apple's native In-App Purchase mechanism alongside external payment options within the same application, a setup previously banned by the platform owner. Apple is mandating specific layout guidelines to ensure a consistent presentation for users. Developers selecting a payment processing structure must commit to their chosen options for a minimum of 12 months before making changes. Furthermore, all software distributed outside the official App Store must still complete Apple's mandatory Notarization review, which checks for basic app functionality and security vulnerabilities.

The updated terms incorporate new consumer protection mandates for alternative payment routes, specifically targeting underage users. Applications categorized under the Kids section are prohibited from including external web links to complete financial transactions. For consumers under 18 years old, any app implementing alternative payment processing or website referral links must include a parental gate requiring guardian authorization prior to purchase. External transaction links are entirely prohibited for users under 13, with protections designed to scale upward if individual EU member states enforce higher parental consent ages.

To facilitate alternative marketplace operations and web distribution, Apple has relaxed its operational prerequisites. The company eliminated a previous mandate requiring marketplace operators to secure a €1 million standby letter of credit from an A-rated bank, as noted by MacRumors. Operators can now qualify through any of five criteria: meeting financial stability thresholds scored by Dun & Bradstreet, maintaining public trading status or ownership by a public entity, securing venture funding from established firms, passing an audit by a licensed accountant, or operating as a government body, educational institution, or non-profit organization. However, Apple cautioned that direct web distribution carries elevated risk due to the absence of marketplace oversight.

European Commission officials welcomed Apple's policy adjustments following the extended regulatory dialogue, noting that the EU executive branch will closely monitor the execution of the new terms. The operational overhaul follows a 2024 regulatory investigation into whether Apple's previous compliance measures satisfied the Digital Markets Act. In 2025, European regulators penalized Apple with a €500 million fine for anti-steering practices that prevented developers from informing users of cheaper purchasing options outside the App Store. The concessions arrive after Apple lost an appeal in July regarding its gatekeeper designation under the DMA, while features such as Apple Intelligence remain unavailable in Europe amid the regulatory standoff.

The policy changes occur amid broader antitrust scrutiny facing mobile platform operators globally. In Brazil, Apple opened iOS to alternative app stores in June following a regulatory settlement, while Epic Games already operates an independent storefront on European iPhones. Simultaneously, a US federal judge ordered Google to stop blocking competing app stores on Android devices, while Apple continues litigating developer fee restrictions in the United States. While alternative distribution routes expand in Europe, Bloomberg noted that Apple's native App Store remains substantially more lucrative than external channels, leaving the long-term impact dependent on developer adoption and regulatory oversight.