Apple has announced sweeping changes to its App Store business terms in the European Union in an effort to satisfy regulators enforcing the Digital Markets Act (DMA). The revised framework replaces the company’s controversial Core Technology Fee with a simplified 5% Core Technology Commission for apps distributed outside the App Store while also restructuring commission rates for developers using Apple’s payment system, third-party payment processors, or external purchase links. The changes, which take effect October 1, are intended to establish a single set of business terms across the EU, reduce complexity for developers, and address the European Commission’s long-running concerns that Apple’s previous policies discouraged competition. While regulators welcomed the revisions and will monitor implementation, critics—including Epic Games—argue the new fee structure still falls short of the DMA’s objective of creating a more open and competitive mobile app marketplace.
Key Takeaways
- Apple abandoned its controversial Core Technology Fee in favor of a simplified 5% Core Technology Commission for apps distributed through alternative marketplaces and web distribution in the European Union.
- Developers will operate under a unified set of business terms beginning October 1, with revised commission rates based on whether they use Apple’s payment system, third-party payment processors, or external purchase links.
- The regulatory battle is not necessarily over. European officials intend to monitor implementation closely, while major critics contend Apple’s revised fees still impose unnecessary costs that may limit meaningful competition.
In-Depth
Apple’s latest concessions underscore the growing influence of the European Union’s Digital Markets Act on the business practices of the world’s largest technology companies. Rather than continuing its multi-tiered system of developer fees that drew repeated criticism from regulators, Apple has opted to simplify its pricing structure and place virtually all European developers under a common set of commercial rules.
The most significant change is the elimination of the Core Technology Fee, which had charged qualifying developers on a per-install basis after reaching certain download thresholds. That fee became a focal point of criticism because many developers argued it discouraged them from using alternative app marketplaces even though the DMA was designed to encourage precisely that competition. In its place, Apple will assess a 5% Core Technology Commission on digital transactions conducted through alternative distribution channels.
Apple also adjusted commissions for developers remaining within the App Store. Those using Apple’s own in-app purchasing system will generally pay a 26% commission, while developers using alternative payment processing will pay 20%. Lower rates remain available for many small businesses and qualifying subscription services. The company says the revised framework provides greater transparency while maintaining the infrastructure, security, and developer services that support the iOS ecosystem.
For European regulators, the changes represent another step in an ongoing effort to curb the market power of dominant digital platforms. Whether the revised model fully satisfies the DMA remains uncertain. Regulators have indicated they will continue evaluating Apple’s compliance, while critics maintain that meaningful competition requires even fewer restrictions and lower fees than those Apple has now proposed.