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Apple is making another major change to the way it charges app developers in the European Union. The company has announced a new fee structure that removes some previous charges and introduces a simpler commission system for developers distributing apps in the EU.
The changes are closely connected to the European Union’s Digital Markets Act, which has been pushing major technology companies to give businesses and consumers more choice. Apple says the new rules will make its European business terms easier to understand while also addressing disagreements with the European Commission.
The new system is scheduled to take effect on October 1, 2026. For developers, the biggest change is the removal of Apple’s Core Technology Fee, a charge that was based on app installations at very large scale. Apple will replace it with a 5 percent commission on digital transactions for apps distributed outside the App Store. The company is also removing some other fees that developers previously had to consider.
Why Apple Is Changing Its EU App Store Fees
Apple has faced increasing regulatory pressure in Europe over how the App Store operates. The European Union has argued that large technology companies should not use their control over digital platforms to make it unnecessarily difficult for developers to offer alternative payment systems or distribution methods.
The Digital Markets Act was created to encourage more competition in the digital economy. Apple has been required to make several changes to its iPhone and iPad ecosystem in response to the legislation.
Since 2024, Apple has introduced options for developers in the EU to use alternative app marketplaces, alternative payment systems and direct web distribution. However, the company also introduced a Core Technology Fee under its alternative business terms. That fee was based on installations after an app reached a certain level of scale.
Apple originally said the Core Technology Fee would affect only a small percentage of developers. However, the fee became one of the most controversial parts of Apple’s European business model because developers could face costs even when they were not using Apple’s traditional App Store payment system.
The new approach changes that system significantly.
Apple Is Removing the Core Technology Fee
One of the most important parts of Apple’s announcement is the removal of the Core Technology Fee.
Under the previous system, qualifying developers could be charged €0.50 for each first annual installation above a one million installation threshold. This structure was particularly important for popular applications with millions of users.
Apple will now replace that system with a Core Technology Commission.
The new commission will be 5 percent on digital transactions for apps distributed through alternative app marketplaces or directly from the web. Instead of charging developers based on installations, Apple will therefore receive a percentage of actual digital sales in those distribution models.
For developers, this could make financial planning easier.
An installation does not necessarily mean that a user has purchased something. A developer could have millions of free users and relatively little revenue. Under an installation based fee structure, large user numbers could still create financial concerns.
The new commission connects Apple’s revenue more directly to the developer’s digital transactions.
Some Other Fees Are Also Being Removed
Apple is not only changing the Core Technology Fee.
The company says its new EU business terms also eliminate the Initial Acquisition Fee and Store Services Fee. This means developers will no longer have to work through the same collection of separate charges under the previous alternative terms.
Apple is also moving developers in the EU toward one unified set of business terms. Previously, developers had different options depending on which Apple business arrangement they selected.
The company says this simplified structure should reduce complexity for developers who want to understand the cost of distributing applications in Europe.
This may be particularly useful for smaller developers that do not have large legal or financial teams.
What Developers Will Pay Under the New System
The new Apple EU App Store fee structure does not mean that all Apple commissions are disappearing.
Developers will still pay commissions on digital goods and services, but the rates will depend on how an application is distributed and how customers complete their purchases.
Apps using Apple In App Purchase through the App Store will face a 26 percent commission under the new terms. Developers using alternative payment processing within their apps will face a 20 percent commission.
There are also reduced rates for certain qualifying developers and programs. Some developers can receive lower commissions through programs such as the App Store Small Business Program, while certain subscription arrangements can also qualify for reduced rates.
Developers that direct customers to external websites for purchases will also face a different commission structure.
This means the European App Store is not becoming completely free of Apple’s fees. Instead, Apple is moving toward a more predictable commission based system.
More Payment Options for App Developers
Another important change is that applications can offer alternative payment methods alongside Apple’s own In App Purchase system.
This could give developers more flexibility when deciding how customers pay for digital products and services.
For example, a developer may want to provide Apple In App Purchase while also offering another payment option. Under the updated rules, both options can exist within the same application, subject to Apple’s requirements.
Apple has also introduced new child safety requirements for apps that use alternative payment methods. These requirements are designed to provide additional protections for younger users when payments take place outside Apple’s traditional payment system.
The change is significant because payment flexibility has been one of the central issues in the European Union’s broader dispute with Apple.
Alternative App Stores Could Become More Important
The new rules could also influence the future of alternative app stores in Europe.
The Digital Markets Act has opened the door for developers and companies to distribute applications through marketplaces other than Apple’s App Store. Developers can also explore direct distribution through websites when they meet Apple’s requirements.
Apple says it is expanding the qualifications for developers that want to operate alternative app marketplaces and distribute applications through the web.
This could create more competition around app distribution.
For many years, the App Store was the main way for iPhone and iPad users to discover and install applications. Alternative marketplaces could give developers another route to reach customers.
However, the success of these alternatives will depend on whether developers and consumers actually choose to use them.
Lower fees alone may not be enough to change user behavior. Consumers are already familiar with the App Store, and many users value the convenience and security of Apple’s ecosystem.
Why the Change Matters for Smaller Developers
Large technology companies are often able to negotiate complex business arrangements because they have legal, financial and technical teams.
Small developers do not always have that advantage.
A simpler Apple fee structure could therefore be useful for independent developers and smaller software companies. Instead of calculating several different charges, developers may find it easier to estimate their costs based on actual transactions.
This could also help developers decide whether alternative distribution is financially worthwhile.
For example, a small company with a successful subscription application may want to compare the cost of remaining entirely within Apple’s App Store system with the cost of using alternative payment or distribution options.
The answer will depend on the company’s business model, customer base and transaction volume.
Apple and the European Commission Are Trying to Find Common Ground
Apple’s announcement comes after a long period of disagreement between the company and European regulators.
The European Commission has been closely examining Apple’s App Store policies and its compliance with the Digital Markets Act. Apple says its latest changes were developed following close collaboration with the European Commission and are intended to resolve disagreements over business terms and alternative distribution.
The European Commission has also indicated that it will monitor how Apple’s new system works in practice.
That point is important because changing written policies is only one part of the process. Regulators will also want to see whether developers can realistically use the new options without facing unnecessary obstacles.
Not Everyone Is Happy With Apple’s Changes
Although Apple describes the changes as a simpler system, not every company or developer group is satisfied.
Epic Games, one of Apple’s most vocal critics in App Store disputes, has criticized the new fee structure. The company has argued that Apple’s new system does not go far enough to create genuine competition.
Consumer advocates have also suggested that the details of implementation will matter.
This disagreement shows why Apple’s European App Store battle is unlikely to disappear completely. Even when companies change their policies, questions can remain about whether those changes provide meaningful competition.
The European Commission will therefore have an important role in determining whether Apple’s updated business terms meet the goals of the Digital Markets Act.
What This Could Mean for iPhone Users
The changes are primarily focused on developers, but ordinary iPhone users could eventually notice the effects.
More competition between payment systems and app marketplaces could encourage developers to experiment with different pricing models.
In theory, greater competition could result in lower prices, more subscription choices or different purchasing options.
However, consumers may not immediately see cheaper apps.
Developers have to decide how much of any savings they want to pass on to customers. They may instead use lower distribution costs to invest in development, customer support, advertising or new features.
Security will also remain an important issue.
Apple has repeatedly argued that its App Store provides security and privacy protections through app review and other controls. Alternative marketplaces and web distribution could create new challenges because applications would not always follow exactly the same distribution process.
That is one reason Apple has introduced additional requirements alongside the new commercial terms.
The Bigger Impact on Apple’s Services Business
The European changes could have implications beyond the App Store.
Apple’s services business has become an important part of the company’s overall financial performance. The App Store, subscriptions and other digital services contribute significant revenue to Apple.
Regulatory changes that reduce Apple’s control over payments and distribution could therefore affect the economics of its services business.
Recent reporting has highlighted the growing pressure on Apple’s highly profitable services operations as regulators in different markets challenge parts of its digital platform strategy.
The European Union is particularly important because its Digital Markets Act is creating rules that can change how large technology companies operate.
If Apple’s new European model works successfully, similar ideas could attract attention from regulators in other countries.
October 1 Will Be an Important Date
Apple says developers can review and agree to the updated terms now, but the major commercial changes will take effect on October 1, 2026.
That gives developers time to study the new commission structure and decide whether they want to change their payment or distribution strategies.
For developers currently using alternative distribution, the end of the installation based Core Technology Fee will be especially important.
Companies will need to compare the new 5 percent commission with their current costs and determine which model makes the most sense for their business.
A New Chapter for Apple’s European App Store
Apple’s decision to remove some fees for app developers in the European Union is more than a simple pricing adjustment.
It represents another major step in the ongoing transformation of Apple’s App Store business in Europe.
The company is removing the Core Technology Fee, eliminating certain additional charges and introducing a new 5 percent Core Technology Commission for digital transactions involving apps distributed outside the App Store.
At the same time, Apple is maintaining commissions for transactions within the App Store while allowing more payment flexibility.
For developers, the biggest benefit may be greater predictability. For regulators, the bigger question will be whether the new rules genuinely create more competition.
The coming months will show how developers respond.
If alternative app marketplaces, payment systems and direct web distribution become more popular, Apple’s traditional App Store model could gradually change. If developers remain reluctant to leave Apple’s established ecosystem, the practical impact may be smaller.
Either way, Apple’s latest European changes show that the relationship between major technology companies and regulators is entering a new phase. The Digital Markets Act is not simply asking companies to follow new rules. It is also changing the choices available to developers and consumers.
For Europe’s app economy, that could prove to be the most important result of Apple’s new fee structure.
