Apple changes fees for alternative app stores in EU

Apple changes fees for alternative app stores in EU
View of an Apple logo at an Apple store in Paris, France, 23 April 2025. Reuters
Reuters

Apple has announced a major overhaul of its business terms for apps distributed in the European Union, introducing a five per cent commission on digital transactions outside its App Store and simplifying its fee structure as it seeks to comply with the bloc’s Digital Markets Act (DMA).

The changes, announced following discussions with the European Commission, will take effect on 1 October. Apple said they would resolve its disagreements with the Commission over business terms and alternative app distribution in the EU.

The European Commission welcomed the changes and said it would monitor their implementation.

Apple replaces Core Technology Fee

Under the new system, Apple will replace its Core Technology Fee, which was charged on a per-install basis to developers reaching a certain scale, with a five per cent Core Technology Commission on digital transactions made through apps distributed outside the App Store.

Apps distributed through alternative app marketplaces or directly via the web will therefore be subject to the five per cent commission.

Apple is also eliminating the initial acquisition fee and store services fee that formed part of its previous system.

EU antitrust regulators had criticised Apple’s earlier conditions, including the Core Technology Fee, arguing that they could discourage developers from using alternative app distribution channels on the company’s iOS operating system.

Apple said the new structure would move all developers distributing apps in the EU onto a single set of business terms similar to commission-based arrangements offered in markets including Japan and Brazil.

New commission rates for App Store developers

Apple is also changing the fees charged to developers using different payment methods within the App Store.

For App Store apps using Apple’s In-App Purchase system, the standard commission will be 26 per cent. However, the rate will be 15 per cent for most developers participating in programmes including the App Store Small Business Program, Mini Apps Partner Program and Video Partner Program, as well as for auto-renewing subscriptions after their first year.

Apps distributed through the App Store but using alternative payment processing will face a 20 per cent commission. Developers participating in the qualifying programmes will pay a reduced rate of 10 per cent.

For App Store apps that direct users outside the app to complete a purchase, Apple will charge a 15 per cent commission, or 10 per cent for eligible developers.

The company said developers will also be allowed to offer Apple In-App Purchase alongside alternative payment methods, an option that was not previously permitted under its EU terms.

Developers will be required to select the payment methods they intend to offer, including Apple In-App Purchase, alternative in-app payment processing, links to external websites or a combination of these options and maintain those choices for 12 months.

EU pressure drives changes

Apple has faced sustained scrutiny from European regulators over whether its App Store rules comply with the DMA, which is designed to increase competition and limit the power of major digital platforms.

The company changed its EU App Store rules and fees in 2025 after regulators ordered it to remove commercial barriers that they said restricted developers from directing customers to payment options outside the App Store.

Apple has traditionally charged developers commissions of up to 30 per cent on purchases of digital goods and services through its platform.

Other markets have also moved to open Apple’s App Store model to greater competition. Japan and Brazil have pursued changes to the company’s rules, while Apple remains involved in litigation in the United States over the fees it can charge developers.

Child protections introduced for alternative payments

Apple said its new EU terms would also include additional safeguards for children when alternative payment systems are used.

Apps in the Kids category will not be permitted to include links to external websites for transactions.

Users under the age of 18 will encounter a parental gate when using App Store apps that offer alternative payment processing or direct users to websites to complete purchases. Apple said the measure is intended to require younger users to involve a parent or guardian before making a transaction.

For children under 13, App Store apps will not be allowed to direct users to websites for transactions.

Apple said the protections would be adjusted in EU member states where parental consent is legally required for digital activity at an older age.

More developers can offer alternative app stores

Apple is also expanding eligibility for companies and organisations seeking to operate alternative app marketplaces or distribute apps directly through the web in the EU.

Companies may qualify if they meet a financial-stability threshold assessed by Dun & Bradstreet, are publicly listed or owned by a publicly traded company, have received venture capital funding from an established investment firm, or have completed a financial audit by a licensed accountant.

Government bodies, educational institutions and non-profit organisations will also be eligible.

Apple said apps distributed outside the App Store will continue to undergo its Notarization process, a basic review intended to check functionality and protect users against serious security threats.

The company argued that web distribution carries additional risks because, unlike the App Store, there is no marketplace operator providing continuing oversight.

Epic Games criticises new fees

Epic Games, the maker of Fortnite and a long-standing critic of Apple’s App Store policies, rejected the new structure.

The company described the commissions as “junk fees” and argued that the changes did not do enough to open the mobile app ecosystem to competition as required by the DMA.

Epic warned that if the European Commission accepted Apple’s terms and ended its ongoing enforcement action, developers and consumers would not receive the benefits the legislation was intended to deliver.

Apple, meanwhile, said the revised system would reduce complexity for developers and bring an end to its disagreements with the Commission over alternative distribution and business terms in the EU.

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