Apple overhauls EU App Store fees and eases alternative marketplace rules

Apple announced a simplified commission structure for apps in the European Union as it works to resolve disagreements with the European Commission over its business terms. The biggest change: Apple will replace its per-install Core Technology Fee with a flat 5% commission on digital goods in apps distributed outside the App Store or on the web.

The move shifts Apple’s EU model away from install-based charges and toward transaction-based fees for outside distribution. Apple also adjusted rates for alternative payments and its own in-app purchases.

Under the new terms, Apple’s in-app purchase fee is 26%, compared with 30% under its traditional terms. TechCrunch reports that most developers will still qualify for a 15% fee through programs such as the App Store Small Business Program, Mini Apps Partner Program, Video Partner Program, and for auto-renewing subscriptions after their first year.

Apps using alternative payment processing will pay a 20% commission, or 10% if they qualify for one of the special programs. Developers will be locked into their chosen payment options for 12 months, whether they use Apple’s in-app purchases, external payments, or both.

Apple is also loosening the requirements for developers that want to operate alternative app stores in the EU. Previously, developers had to show significant financial backing or meet milestones including at least two years in Apple’s Developer Program and more than 1 million first annual installs in the EU in the previous calendar year.

Now, Apple no longer requires developers to show they have met those milestones, though that remains an option. The company added other ways to demonstrate financial backing, including public company status, financial audits, qualifying venture capital funding, and more.

The fee overhaul is Apple’s latest attempt to create App Store business terms that comply with EU regulations after years of back-and-forth with regulators over complexity and fairness. TechCrunch notes Apple previously adjusted its EU App Store fees after regulators fined the company €500 million for noncompliance with the Digital Markets Act and threatened further fines.

The new rules also set guardrails around external links and purchases. Apple is barring external links from apps in the Kids category for safety reasons, and users under 18 will need parental approval before making purchases outside the App Store.