Apple Announces Changes for Apps: New App Store Commission Rates and Payment Rules Explained
Apple has once again rewritten the rulebook for how developers do business in Europe, and this time the update actually appears designed to end years of friction rather than extend it. The company confirmed a fresh set of business terms for apps distributed in the EU, arriving after what Apple describes as close, ongoing work with the European Commission to settle disputes that had been simmering since the Digital Markets Act took effect. Developers can sign onto the new terms immediately, though the actual changes won’t kick in until October 1.
The headline shift is structural. Apple is consolidating every developer distributing apps in the EU onto a single set of business terms, replacing a tangle of overlapping fee structures that had grown increasingly difficult for even seasoned developers to parse. Anyone who tried to explain the old Core Technology Fee to a colleague knows how badly that system needed simplifying. That fee, a per-install charge that applied once a developer crossed a certain scale, is being scrapped entirely. In its place comes something Apple is calling the Core Technology Commission, a flat 5 percent cut on digital transactions for apps distributed outside the official App Store. Apple is also killing off the initial acquisition fee and the store services fee that developers previously had to account for, which should make budgeting for EU distribution considerably less of a guessing game.
Commission rates themselves are getting adjusted too, and the numbers matter a lot depending on how a developer chooses to handle payments. For apps that stay inside the App Store and use Apple’s own In-App Purchase system, the standard commission is set at 26 percent. That sounds steep at first glance, but the vast majority of developers won’t actually pay that rate. Anyone enrolled in the App Store Small Business Program, the Mini Apps Partner Program, or the Video Partner Program gets a reduced 15 percent rate, and that same discounted rate applies to auto-renewing subscriptions once they pass their first year. For developers who want to use the App Store but process payments through their own alternative system, the commission drops to 20 percent generally, or 10 percent for those same qualifying programs. Apps that simply link out to an external website to complete a purchase see the lowest in-App Store rates, 15 percent standard or 10 percent for smaller developers. And for anything distributed entirely outside the App Store, through an alternative marketplace or straight from the web, that flat 5 percent Core Technology Commission is the only charge.
One of the more consequential changes buried in the announcement is that developers can now offer Apple’s own In-App Purchase system alongside alternative payment options within the same app, something the EU rules had not previously allowed. This is a genuine expansion of flexibility, though Apple has attached presentation requirements meant to keep the checkout experience consistent for users regardless of which payment path they end up choosing. Developers do have to commit to whatever combination of payment options they select and stick with it for twelve months before switching, so this isn’t something to toggle on a whim.
Child safety has clearly been a sticking point in these negotiations, and Apple has built in several specific protections tied to alternative payments. Apps in the Kids category won’t be allowed to link out to websites to complete transactions at all, closing off an obvious avenue for scams targeting children. For anyone under 18, apps using alternative payment processing or linking outside the app for purchases now need a parental gate requiring a parent or guardian to be involved before money changes hands. The rules tighten further for children under 13, where linking out to an external website for any transaction is prohibited outright. In EU countries with stricter parental consent laws for children over 13, those protections scale up accordingly rather than being capped at the baseline.
Apple is also loosening who can actually run an alternative app marketplace or distribute apps via the web in the EU, an area where the company had previously faced criticism for setting the bar too high. The eligibility criteria now include meeting a moderate financial stability threshold as measured by Dun & Bradstreet, being publicly traded or owned by a publicly traded company, having received venture funding from an established investment firm, having completed a financial audit through a licensed accountant, or simply being a government entity, educational institution, or nonprofit. That’s a meaningfully wider net than before, and it should open the door for a broader range of organizations to compete with Apple’s own storefront on iPhone.
Apple is not, however, backing off its Notarization requirement, the baseline review process it applies to every app distributed outside the App Store regardless of marketplace. The company’s reasoning is that web distribution in particular, which remains an EU-only option, lacks the kind of ongoing oversight a marketplace operator would normally provide, leaving more room for a bad actor to cause damage before getting caught. Apple frames Notarization as a functional safety net rather than a full review, checking for basic operability and protection against serious threats without imposing the same scrutiny the App Store applies to its own listings.
- For App Store apps using Apple In-App Purchase, the commission will be 26 percent. For the vast majority of developers, including those in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program, and for auto-renewing subscriptions after their first year, it will be 15 percent.
- For App Store apps using alternative payment processing, the commission will be 20 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
- For App Store apps that link out of the app to complete purchases, the commission will be 15 percent. Developers in the programs mentioned above will pay a reduced rate of 10 percent.
- For apps distributed via alternative app marketplaces or the web, Apple will charge a 5 percent Core Technology Commission.
Alternative Payments and Apple In-App Purchase
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.
Expanded Eligibility to Operate Alternative App Marketplaces or Distribute via the Web
- Meet a moderate financial-stability bar as scored by Dun & Bradstreet.
- Are publicly traded or owned by a publicly traded company.
- Have received venture funding from an established investment firm.
- Have completed a financial audit by a licensed accountant.
- Are a government entity, educational institution, or nonprofit.
This announcement lands against the backdrop of Apple’s long-running tension with Brussels over the Digital Markets Act, a fight that has included fines, formal noncompliance findings, and repeated rounds of Apple adjusting its rules only to face further pushback. The fact that this round is being framed as a resolution rather than another interim compromise suggests both sides may have found something closer to common ground, though developers and regulators alike will be watching closely once the terms actually go live in October to see whether the new commission structure holds up under real-world use. Apple has published detailed guidance for developers navigating these changes through its developer support resources, and companies operating in the EU app economy would be wise to review the specifics before the deadline arrives. For readers tracking how global regulation continues to reshape app store economics, Techora’s coverage of Big Tech antitrust developments follows these shifts as they unfold across other markets too.
