• Apple replaces the Core Technology Fee with a 5% commission on digital transactions outside the App Store, effective October 1.
  • EU commissions drop to 26% for in-app purchases, 20% for alternative payments, and 15% for external purchase links.
  • The changes expand alternative app distribution and add child-safety measures to comply with the Digital Markets Act.

A New Fee Structure for Developers

Apple is revamping its EU App Store terms, a move that will dramatically alter how developers are charged for digital sales. Starting October 1, the contentious Core Technology Fee will be eliminated and replaced with a 5% commission on digital transactions that occur outside the App Store. This shift is part of Apple's ongoing efforts to comply with the European Union's Digital Markets Act (DMA), which mandates that tech giants allow for more competition and consumer choice.

For transactions that still happen within Apple's ecosystem, the commission rates have been reset: 26% for in-app purchases, 20% for alternative payment methods, and 15% for external purchase links. These reductions are notable—previously, Apple charged a 30% standard commission for most transactions, with a 15% rate for small businesses. The new structure aims to strike a balance between regulatory compliance and maintaining Apple's revenue streams.

Expanding Distribution and Safety

Beyond fees, the update broadens alternative app distribution, which means developers will have more flexibility in how they reach EU users. Apple is also introducing additional child-safety measures, a response to ongoing scrutiny from regulators and consumer groups. These shifts reflect a broader trend in the industry, where major platforms are being forced to open up their ecosystems in response to regulatory pressure.

According to people familiar with the matter, the transition will be phased through 2026, giving developers time to adapt. "This is a significant step forward," said one developer who spoke on condition of anonymity. "The fee cut is meaningful, especially for smaller apps that rely on external payments." We reached out to Apple for comment but did not receive an immediate response.

The Broader Implications

The changes are likely to have ripple effects across Europe's digital economy. With lower fees, developers may be more inclined to invest in new apps and services within the EU. The expansion of alternative distribution channels could also foster innovation, as apps are no longer tethered solely to the App Store. However, some analysts caution that the complexity of the new fee structure could create confusion, particularly for smaller developers who lack legal expertise.

For now, Apple's overhaul represents a pragmatic approach to regulatory compliance. By dropping the Core Technology Fee, it addresses a major complaint from developers, while the new commissions ensure the company still earns from its ecosystem. As the October 1 deadline approaches, all eyes will be on how developers and consumers respond to this new landscape.

Correction: An earlier version of this article incorrectly stated that the 5% commission applies to all external transactions. In fact, it applies specifically to digital transactions outside the App Store, including those made through alternative payment systems.