STOCKHOLM, Sweden — Apple will introduce a new fee structure for developers distributing apps outside its App Store in the European Union, including a 5% commission on digital transactions through alternative app marketplaces and websites. The changes, announced Tuesday, are aimed at bringing Apple’s business terms into closer alignment with the EU’s Digital Markets Act.
- Apple will charge a 5% commission on apps distributed through alternative marketplaces or the web.
- Alternative payment processing for App Store apps will carry a 20% commission, potentially falling to 10% for qualifying small businesses.
- The new terms take effect October 1 and remove fees used under Apple’s previous EU system.
- The European Commission welcomed the changes and said it will monitor how Apple implements them.
Apple changes EU app store fee structure
Apple’s revised framework replaces a more complicated fee system introduced after the company faced pressure from European Union antitrust regulators. The earlier arrangement included an initial acquisition fee and a store services fee, alongside a Core Technology Fee that drew criticism from regulators.
Under the new terms, developers distributing applications through alternative app marketplaces or directly over the web will pay a 5% Core Technology Commission. Apple said the revised structure will provide a single set of terms for developers operating in the EU.
Alternative payment processing will carry separate commission
The new system distinguishes between alternative distribution and alternative payment processing. Apps that remain available through Apple’s App Store but use an alternative payment processor will face a 20% commission.
Apple said that rate can be reduced to 10% for developers participating in its small business programme. The separate structure means developers will have different costs depending on how they distribute applications and process digital transactions.
EU rules continue to reshape Apple’s App Store model
The changes follow Apple’s earlier adjustments to its European App Store policies after EU antitrust regulators determined that some of the company’s commercial conditions created barriers for developers seeking to direct customers outside Apple’s store.
Regulators had specifically criticised Apple’s Core Technology Fee, arguing that the structure could discourage developers from using alternative ways to distribute applications on Apple’s iOS operating system.
Apple said the revised terms, which will become effective on October 1, will resolve disagreements with the European Union and the European Commission concerning the fee arrangements.
European Commission to monitor implementation
The European Commission welcomed Apple’s announcement but said it would continue monitoring the implementation of the new arrangements. That oversight reflects the broader effort by EU regulators to ensure that major digital platforms comply with the Digital Markets Act.
Apple said its new EU terms will resemble commission-based arrangements it already offers developers in markets including Japan and Brazil, where authorities have also sought changes to the company’s App Store business model.
Apple’s global App Store fee disputes continue
The European changes come as Apple faces continuing scrutiny over the commissions it charges developers for digital goods and services. Developers have historically paid commissions of as much as 30% on certain in-app digital transactions under Apple’s App Store model.
Apple’s approach has also faced regulatory and legal challenges outside Europe. The company is still involved in litigation in the United States over what it can charge developers.
What Apple’s EU changes mean for developers
From October 1, developers in the European Union will have a clearer fee framework for distributing apps outside the App Store. Those using alternative marketplaces or web distribution will face the 5% Core Technology Commission, while developers using alternative payment processing inside App Store apps will face the separate commission structure.
The revised system represents another step in the continuing adjustment of Apple’s App Store model to regulatory demands in major technology markets. The European Commission’s monitoring will determine how the new terms operate in practice under the bloc’s digital competition rules.
Frequently Asked Questions
When will Apple’s new EU app fees take effect?
Apple said the revised terms will become effective on October 1.
What commission will Apple charge for alternative app distribution?
Apple will charge a 5% Core Technology Commission for apps distributed through alternative app marketplaces or the web under the new EU terms.
Praveen Yadav is the Founder and Content Creator of The Nation Bulletin, an independent digital news platform focused on delivering timely, reliable and meaningful news from India and around the world.
