Apple has dismantled the Core Technology Fee, its per-install charge that could cost developers €0.50 for each installation above one million, replacing it with a 5 percent commission on digital transactions for apps distributed outside the App Store. The restructuring, announced today and effective October 1, represents Apple’s most substantial concession to EU regulatory pressure in years.
The change follows close collaboration with the European Commission and resolves a system that created confusion and regulatory friction for nearly two years. Under previous EU rules, developers navigated multiple fee tiers depending on distribution method and payment type. A European Commission spokesperson welcomed the update, stating the Commission will monitor Apple’s implementation of the new terms and that the changes follow “close dialogue” with the company.
How the New Fee Structure Works
Apple has consolidated its European App Store pricing into a unified model with commission rates tied to distribution channel and payment method. The framework eliminates the initial acquisition fee and store services fee that previously complicated developer accounting.
- App Store with Apple In-App Purchase: 26 percent commission
- App Store with alternative payment processing: 20 percent commission (10 percent for Small Business Program, Mini Apps Partner Program, or Video Partner Program members)
- Link-out to web payment: 15 percent commission, down from Apple’s previous link-out rate
- Auto-renewing subscriptions after first year: 15 percent commission across all distribution methods
- Alternative payment apps distributed outside App Store: 5 percent commission on digital transactions
Developers in the Small Business Program, Mini Apps Partner Program, or Video Partner Program maintain reduced rates on alternative payment processing and the standard 15 percent rate for other channels.
The new terms permit developers to offer Apple In-App Purchase alongside alternative payment options in the EU, a capability Apple previously prohibited. Developers can select their preferred payment pathway, Apple In-App Purchase alone, alternative payment processing, link-out to web, or any combination, and must maintain that choice for 12 months before switching. This flexibility was central to the Commission’s pressure on in-app purchase rules over the past two years.
Developers can sign the new agreement immediately, giving them six weeks to prepare before October 1 implementation. Apple has published detailed resources on its Developer Support page to help developers understand the alternative payment options available for their apps in the EU.
The old Core Technology Fee’s per-install model could become prohibitively expensive for popular apps, making the shift to transaction-based pricing a material improvement for high-volume developers. A top-grossing app with five million first-year installs would have faced €2 million in charges under the old system; the new transaction commission scales only with actual revenue.
This settlement effectively concludes Apple’s contentious dispute with the Commission over App Store commission disputes and alternative distribution, though the Commission has stated it will continue monitoring compliance. For developers who have navigated Apple’s previous EU ruleset, the simplification alone represents a material win, one fewer billing model to track and one less reason for regulatory friction. The question now is whether the European Commission view this as a final resolution or merely a checkpoint in a longer regulatory process, particularly as App Store commission policies face scrutiny globally.
