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Technology

Apple Revises EU App Store Fees and Relaxes Rules for Alternative Marketplaces

Apple has unveiled a revised commission structure for software applications within the European Union, aiming to resolve ongoing disputes with the European Commission regarding its commercial policies. The update replaces previous fees with lower baseline percentages and relaxes criteria for setting up third-party app marketplaces.

What Happened

According to Apple, the per-install Core Technology Fee has been removed and replaced with a flat 5% commission on transactions for software distributed via the web or through alternative app marketplaces. In addition, the company revised its standard in-app purchase commission inside the EU App Store to 26%, reduced from the traditional 30% rate.

Developers using alternative payment processors will face a 20% commission rate, though participants in specific initiatives—such as the App Store Small Business Program, the Mini Apps Partner Program, and the Video Partner Program—will pay a discounted rate of 10%. The standard in-app purchase rate also drops to 15% for developers qualified under these special programs, as well as for auto-renewing subscriptions running beyond their initial year.

Apple stated that developers must commit to their selected payment processing methods for a 12-month period, whether choosing Apple’s billing system, third-party payment services, or a blend of both. Furthermore, the company established safeguards prohibiting external links inside apps belonging to the Kids category, and mandated that users younger than 18 obtain parental approval prior to completing transactions outside the App Store.

The tech firm has also revised the qualification rules for launching rival app stores. Previously, entities had to show substantial financial backing or maintain at least two years in Apple’s Developer Program alongside an app generating more than 1 million initial annual EU installs. Apple has scrapped the requirement to be an established large developer and now permits alternative proof of financial viability, including venture capital funding, financial audit reports, or public company status.

Key Highlights

  • Core Technology Fee Replaced: Transactions on apps distributed outside the App Store or via the web now incur a flat 5% fee instead of per-install charges.
  • In-App Purchase Reductions: The standard rate for Apple in-app billing drops to 26%, while alternative payment systems carry a 20% fee.
  • Program Discounts: Qualified developers in partner programs or with older subscriptions pay 15% for standard purchases or 10% for external payment processing.
  • 12-Month Payment Lock-in: Developers must keep their chosen payment setups for at least one year.
  • Child Protection Policies: External links are barred in the Kids category, and users under 18 require parental permission for purchases made outside the App Store.
  • Marketplace Rules Relaxed: The rule requiring over 1 million annual installs to launch an alternative app store was eliminated in favor of flexible financial standards.

Why This Matters

These modifications represent Apple’s response to regulatory scrutiny under the European Union’s Digital Markets Act (DMA). Regulators previously levied a €500 million penalty against Apple for noncompliance and warned of supplementary financial punishments. Earlier adjustments introduced by Apple had faced criticism from opponents who described the initial multi-tiered framework—comprising initial acquisition charges, store service costs, and varying service tiers—as malicious compliance. The revised policies directly alter developer operational costs and lower the barrier to entry for prospective marketplace operators across EU member states.

What to Watch Next

The European Commission will evaluate Apple’s latest terms to determine whether the simplified fee structure and amended store criteria satisfy DMA compliance standards. Observers will also track how developers in the EU adapt their distribution and payment methods under the 12-month commitment requirement.

Frequently Asked Questions

What is the new commission for web and third-party store distributions?

Apple has introduced a flat 5% fee on transactions for applications distributed through alternative storefronts or web browsers, replacing the former per-install Core Technology Fee.

Can any developer launch an alternative marketplace under the updated rules?

Developers are no longer required to show 1 million annual EU downloads or two years of program history, but they must still demonstrate financial viability through options like financial audits, public status, or qualified venture capital backing.

Are there restrictions on external links for certain apps?

Yes. Applications categorized under the Kids section cannot incorporate external links, and users under the age of 18 must secure parental consent before executing purchases outside the App Store.

Source: Based on official announcements and industry reporting via Apple Newsroom and TechCrunch.