Apple overhauls EU App Store terms, replaces per-install fee with 5% commission

Apple is overhauling its European Union App Store business terms, scrapping its controversial per-install Core Technology Fee and replacing it with a 5% Core Technology Commission on digital transactions for apps distributed outside the App Store. The company also said it is moving every developer distributing apps in the EU onto a single set of business terms.

In an update published Tuesday, Apple said developers can begin signing the new terms immediately and that the changes will take effect Oct. 1, 2026. Apple said the rewrite followed close collaboration with the European Commission, the EU’s executive arm, and “resolve its disagreements” with the Commission over business terms and alternative app distribution. Apple said, “Developers can sign the new terms today, and changes will go into effect on October 1.”

The changes amount to Apple’s clearest commercial reset in Europe since the EU’s Digital Markets Act, a law designed to curb the power of large online gatekeepers, forced the company to open iPhone app distribution and payments to more competition. Apple was designated a gatekeeper for services including iOS and the App Store, with the law’s obligations applying from March 2024.

The biggest change is the end of the Core Technology Fee, or CTF, which Apple had described as a per-install charge for developers that reached extraordinary scale. In its place, Apple is introducing what it called “a simple 5 percent commission” on digital transactions in apps distributed outside the App Store, including through alternative app marketplaces and directly via the web. Apple also said it is eliminating the initial acquisition fee and store services fee.

For apps that remain in the App Store and use Apple’s in-app payment system, known as in-app purchase or IAP, Apple said the standard EU commission will be 26%. That drops to 15% for what Apple said is the vast majority of developers, including those in the App Store Small Business Program, Mini Apps Partner Program and Video Partner Program, as well as auto-renewing subscriptions after the first year.

For App Store apps that use alternative payment processing inside the app, Apple said the commission will be 20% at the standard rate and 10% for developers in those reduced-rate programs. For apps that send users out of the app to complete a purchase on the web, Apple said the commission will be 15% at the standard rate and 10% for reduced-rate developers.

Apple also said EU developers will now be allowed to offer Apple IAP alongside alternative payment options inside the same app. The company said presentation requirements will apply, and developers that choose payment options must keep those options in place for 12 months.

The company paired the commercial changes with new EU-specific child safety rules. Apps in the Kids category on the App Store may not include links to websites to complete transactions, Apple said. For users under 18, App Store apps that use alternative payment processing or website link-outs for purchases must include a parental gate requiring a parent or guardian to be involved. For users under 13, App Store apps cannot link out to websites for transactions, with protections extending to older ages where national law requires parental consent.

Apple also said it has broadened who can qualify to run an alternative app marketplace or distribute apps via the web in the EU, expanding eligibility to entities including public companies, companies owned by public firms, venture-backed and audited businesses, and some government, education and nonprofit bodies. It said all alternatively distributed apps will still have to go through Notarization, Apple’s baseline security review.

The move comes after sustained EU scrutiny of Apple’s first round of DMA compliance terms. On April 23, 2025, the European Commission said, “Following a constructive dialogue with Apple, the Commission has decided to close its investigation into Apple’s user choice obligations.” But the Commission also said at the time that it had a preliminary view that Apple’s contract terms for alternative app distribution, including the fee structure and eligibility requirements, breached the DMA.

Apple has also faced broader EU pressure over App Store rules, including a roughly 1.84 billion euro antitrust fine in March 2024 over anti-steering restrictions in music streaming.

For now, Apple’s message to developers is straightforward: They can adopt the new EU terms now, and the changes begin Oct. 1.