Apple Simplifies App Store Fees in EU Amid Regulatory Scrutiny

Apple has announced a simplified commission structure for apps in the European Union, replacing its per-install Core Technology Fee with a flat 5% commission on apps distributed outside the App Store or on the web. The changes mark Apple's latest attempt to create App Store business terms that comply with EU regulations, after years of back-and-forth with regulators over the terms' complexity and fairness.

The new model adjusts its rates for alternative payments and in-app purchases, making it easier for developers to open alternative app stores. Most developers will still qualify for the discounted 15% fee through special programs such as the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program, and for apps with auto-renewing subscriptions after their first year.

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Apps using alternative payment processing will pay a 20% commission unless they're in one of the special programs, in which case the rate will drop to 10%. Developers will be locked into their chosen payment options for 12 months, whether they use Apple's in-app purchases, external payments, or a combination of the two. The new rules also loosen the requirements for developers to operate an alternative app store, permitting marketplaces that meet certain financial stability bars.

The changes come after Apple adjusted its App Store fees in the EU last year following a €500 million fine from regulators for noncompliance with the EU's Digital Markets Act (DMA). The new simplified commission structure is part of Apple's ongoing efforts to create business terms that comply with EU regulations and avoid further fines. When you purchase through links in our articles, we may earn a small commission. This doesn't affect our editorial independence.