Apple announced a new commission structure for app developers in the European Union on Tuesday, replacing the widely criticized Core Technology Fee with a flat 5% commission on digital transactions in apps distributed outside the App Store.
The overhaul, effective October 1, introduces unified business terms for all EU developers. For apps using Apple’s in-app purchase system, the commission drops to 26%, while alternative payment processing lowers it to 20%. Developers who link out of the app to complete purchases will pay 15%. Small business program participants and auto-renewing subscriptions after the first year qualify for reduced rates across all tiers.
The Core Technology Fee, introduced as part of Apple’s initial compliance with the EU’s Digital Markets Act, charged developers a per-install fee that critics said disproportionately burdened popular apps. Its replacement with a percentage-based commission removes a major flashpoint in Apple’s standoff with European regulators.
A European Commission spokesperson told Bloomberg the Commission welcomes Apple’s changes, noting they follow a “close dialogue” between the two sides. The announcement came alongside eight separate changes to Apple’s App Tracking Transparency feature in Europe, made in response to a German antitrust investigation.
The shift extends Apple’s regulatory concessions beyond Europe. In June, Brazil became the first major market outside the EU to receive DMA-style changes, with Apple allowing rival app stores and alternative payment systems under a deal with antitrust regulator CADE. Apple contrasted that deal with the EU’s approach, saying Brazil let it maintain safeguards like marketplace authorization.
For developers, the new structure simplifies a patchwork of fees that had grown increasingly complex since the DMA took effect. Apple had initially resisted meaningful concessions, imposing the per-install fee and additional restrictions that drew criticism from Epic Games, Spotify, and other major developers.
The changes represent a significant retreat by Apple, which for years maintained a uniform 30% commission on digital transactions. While the new rates remain above what many developers had hoped for, they mark the lowest fees Apple has ever offered in the EU and could serve as a template for future regulatory negotiations in other markets.
Sources: CNBC; 9to5Mac; Bloomberg; European Commission statement
discussion