According to reports from Reuters, Apple announced on Tuesday that it will charge a 5% commission on digital transactions in apps distributed outside its App Store, replacing a more complex system. The company said this change seeks to comply with the European Union's Digital Markets Act. For apps distributed through alternative app marketplaces or the web, Apple will charge a 5% Core Technology Commission. App Store apps using alternative payment processing will face a 20% commission, although fees could fall to 10% under its small business programme. The new terms set Apple's in-app purchase fees at 26%, compared with 30% under its traditional terms, with most developers still qualifying for the discounted 15% fee through special programs. As reported by Geoffrey Cain, the move comes after Apple recently announced eight changes to the App Tracking Transparency feature in Europe, following an investigation by a German antitrust regulator.
As reported by Reuters, the company last year changed App Store rules and fees in the EU after the bloc's antitrust regulators ordered it to remove commercial barriers that they said hindered developers from directing customers outside the store. The regulators criticised Apple's conditions, including a new Core Technology Fee, saying they discouraged developers from using alternative app distribution channels on its iOS mobile operating system. The new terms eliminate the initial acquisition fee and store services fee charged under the previous system. Apple had previously adjusted its App Store fees in the EU after regulators fined Apple €500 million for noncompliance with the EU's Digital Markets Act and threatened further fines. The old structure included an initial acquisition fee, store services fees, and different tiers of service based on developers' needs.
According to Reuters, the changes, effective October 1, 2026, will resolve disagreements with the EU and the European Commission over these issues. The Commission said it welcomed Apple's changes, and will monitor their implementation. Apple will introduce a single set of terms for developers operating in the EU that are similar to the commission-based terms it offers in markets such as Japan and Brazil. The new rules significantly loosen requirements for developers to operate alternative app stores, permitting marketplaces that meet certain financial stability bars. Previously, Apple required developers to either prove they had significant financial backing or show that they had been in Apple's Developer Program for at least two years and had an app with more than 1 million first annual installs in the EU in the previous calendar year. Now Apple doesn't require developers to show they've met those milestones, though that's still an option, and has added other ways to demonstrate financial backing, including public company status, financial audits, qualifying VC funding, and more.
As reported by Geoffrey Cain, Apple's newly announced changes include comprehensive child safety protections for alternative payments in the EU. Apps in the Kids category on the App Store will not include links to websites to complete transactions, to reduce the risk of fraud or scams targeting children. For users under 18 years old, all apps from the App Store that use alternative payment processing or link out to a website for transactions must include a parental gate that requires younger users to involve their parent or guardian before making a purchase. For users under 13 years old, apps from the App Store cannot link out to websites for transactions to protect against the risk of scams that target younger kids. Apple notes that in EU member states where parental consent for digital actions is required for children older than 13, these protections will scale accordingly. Additionally, Apple will continue to require all apps distributed via alternative channels to go through its Notarization process, citing that web distribution lacks the ongoing oversight provided by a marketplace operator.
