Brussels: Apple announced a major overhaul of its European Union app-distribution fees, introducing a unified commission structure aimed at resolving disagreements with the European Commission regarding compliance with the bloc's Digital Markets Act (DMA). This move signifies Apple's intent to align more closely with regulatory expectations and to provide a more transparent fee structure for developers within the EU.
According to Anadolu Agency, Apple will replace its existing per-install Core Technology Fee with a 5% Core Technology Commission on digital transactions conducted in apps distributed through alternative app marketplaces or directly from the web. This change is part of a broader effort to ensure a fairer and more competitive digital marketplace in line with the DMA's requirements.
Under the new fee structure, apps distributed through Apple's App Store and using its in-app purchasing system will face a standard commission of 26%. However, apps that choose to use alternative payment-processing systems will see a reduced commission rate of 20%. Moreover, developers that direct users to external websites to complete purchases will be charged a 15% commission.
Apple has also announced that developers participating in specific programs, such as its Small Business Program, Mini Apps Partner Program, and Video Partner Program, will qualify for even lower rates. Additionally, auto-renewing subscriptions after their first year will benefit from reduced commissions. The new fee structure will eliminate initial acquisition and store-services fees, taking effect on October 1, with developers encouraged to begin accepting the revised terms immediately.
The changes come after what Apple described as 'close collaboration' with the European Commission, marking a significant step in a prolonged dispute over the DMA. The act requires designated digital 'gatekeepers' like Apple to allow developers to inform customers about alternative offers and payment options outside their app stores.
Earlier, in April 2025, the European Commission fined Apple £500 million ($578.7 million) for violating the DMA's anti-steering rules by limiting developers' ability to direct users to cheaper offers outside the App Store. The Commission had also mandated Apple to remove these restrictions and avoid introducing any measures with similar effects, emphasizing that developers should be able to inform customers about external offers without charge.
Historically, Apple's commission rates on digital purchases through iPhone apps were set at either 30% or 15%, with a strong preference for apps to be distributed via its App Store. While Apple has defended its commission structure as essential for funding security, privacy protections, payment processing, and app-review services, critics argue that it stifles competition and imposes high costs on developers.