Apple Simplifies EU App Store Fees to 5% for Alternative Distribution

Apple has announced a significant overhaul of its commission structure for the European Union, aiming to resolve ongoing disputes with the European Commission over the Digital Markets Act (DMA). The new model replaces the previously criticized per-install Core Technology Fee with a flat 5% commission on digital goods sold through alternative app stores or on the web.

This shift marks Apple's latest attempt to comply with EU regulations after regulators fined the company €500 million last year for noncompliance. The previous fee structure, which included initial acquisition fees and tiered service levels, was widely criticized by developers and regulators as an example of "malicious compliance"—a technically legal but functionally complex system that discouraged the use of alternative distribution channels.

Under the new terms, Apple’s standard in-app purchase fee drops to 26%, down from the traditional 30%. However, most developers will likely continue to pay the discounted 15% rate through existing programs such as the App Store Small Business Program or for auto-renewing subscriptions after the first year. For apps using alternative payment processing, the commission is set at 20%, or 10% for eligible participants in special programs.

Developers must now lock in their chosen payment method for 12 months, whether they opt for Apple’s in-app purchases, external payments, or a hybrid approach. Apple has also loosened the requirements for operating alternative app stores, allowing marketplaces to qualify through financial audits, public company status, or qualifying venture capital funding, rather than requiring proof of massive install bases or long-standing developer program tenure. Exceptions remain for safety, including restrictions on external links in Kids category apps and parental approval requirements for purchases outside the App Store by users under 18.