The news
Apple announced changes to its App Store policies and fees in the European Union to comply with the Digital Markets Act. The updates remove the initial acquisition fee and the store services fee for apps distributed outside the App Store. Apple will now charge a 5 percent Core Technology Commission on digital purchases instead of the prior per-install Core Technology Fee. The company described the moves as the result of close collaboration with the European Commission that resolves disagreements over business terms and alternative distribution.
The revisions apply only inside the European Union. No changes were announced for other regions. Apple characterized the package as a simplification that addresses both apps sold through its own marketplace and those that reach users through third-party channels or direct web distribution.
Context
Before these adjustments, developers faced layered fees even when they chose to distribute apps through alternative app marketplaces or the web. The previous structure included an initial acquisition fee plus a store services fee for those routes, along with the per-install Core Technology Fee. The new framework drops those two fees entirely for non-App Store distribution and substitutes a single percentage commission on digital purchases.
Commission rates are also changing for apps that remain inside the App Store, for those using alternative payments, and for those reaching users through alternative marketplaces or direct web distribution. The prior per-install model had drawn objections from regulators because it imposed costs regardless of whether an app generated revenue. Apple’s shift to a revenue-based commission aligns the charge more closely with actual sales inside an app.
Details
The Core Technology Commission applies at 5 percent on digital purchases made inside apps that bypass the App Store. This replaces the earlier model that charged developers each time an app was installed. For apps that continue to use the App Store with in-app purchase, Apple is adjusting commission rates, though the sources do not specify the new percentages. Developers who adopt alternative payment systems or list their apps in third-party marketplaces will see the removal of the acquisition and store services fees that previously applied on top of other charges.
Apple stated that the revisions simplify the overall fee structure. The changes address both App Store apps and apps that reach European users through alternative channels. The company said the updates resolve its prior disagreements with the Commission. Bloomberg reported the moves as a set of sweeping changes intended to settle a dispute with the European Union over competition concerns. The MacRumors account emphasized that the new terms were reached after “close collaboration” with the European Commission.
No technical implementation details, such as how the 5 percent commission will be calculated or reported, appear in the announcements. The sources also do not indicate whether the new commission applies to all digital goods or excludes certain categories such as subscriptions or physical goods.
Reactions / counterpoints
The sources contain no developer reactions or statements from rival app marketplaces. Apple’s description of the outcome as a resolution of disagreements stands without accompanying comment from the European Commission in the provided material. It remains unclear whether the Commission views the revised terms as fully satisfying the requirements of the Digital Markets Act or whether further adjustments are expected.
Why it matters
These adjustments lower the cost of reaching iPhone users in Europe for developers who prefer not to rely on Apple’s marketplace. By eliminating per-install charges and the two upfront fees, the new terms reduce the financial penalty for choosing alternative distribution or payment methods. The shift to a percentage commission on digital purchases aligns costs more closely with actual revenue rather than installation volume.
For developers already inside the App Store, the revised commission rates will determine whether the total burden rises or falls compared with the old schedule. The outcome shows how the Digital Markets Act continues to force concrete changes in Apple’s European business terms without requiring the company to alter its approach elsewhere. Over time, the simpler structure may encourage more developers to test alternative distribution routes inside the EU, particularly for apps that generate revenue through digital goods rather than high-volume free installs.
The changes also illustrate Apple’s preference for revenue-linked fees over flat or per-install charges when it must accommodate regulatory demands. Whether similar models appear in other jurisdictions will depend on how aggressively regulators elsewhere press comparable cases.
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