Apple will replace its installation-linked Core Technology Fee with a single 5% Core Technology Commission for EU apps distributed outside the App Store, effective October 1, 2026. The overhaul also revises in-app commission tiers, eases third-party marketplace requirements, and adds child-protection rules, following a €500 million DMA fine and recent dialogue with the European Commission.
How did the EU's DMA ruling drive Apple's overhaul of App Store terms?
A €500 million Digital Markets Act (DMA) fine from the European Commission preceded Apple's decision to unify its EU App Store fee structureCITE:E2. In April 2025, the European Commission ruled that Apple had violated the DMA's anti-steering provisions and imposed the fine; Apple appealed the decisionCITE:E2. Apple will implement a new set of App Store commercial terms across the EU starting October 1, 2026, consolidating them into a single fee framework that applies to all developers publishing apps within the EUCITE:E1.
How did Apple eliminate per-install billing in favor of transaction-based billing?
Apple is replacing its installation-linked Core Technology Fee with a flat 5% Core Technology Commission tied to transaction valueCITE:E8. Under the old Core Technology Fee (CTF), developers whose apps — regardless of App Store listing status — exceeded 1 million installs or updates per year owed €0.5 per install or update, even if the app generated no revenueCITE:E3. The replacement, the Core Technology Commission (CTC), applies only to apps distributed through channels other than the App Store — third-party marketplaces or web downloads — and charges 5% of digital transaction value, with no charge when there is no transactionCITE:E4. Apple also confirmed it is waiving the previous initial acquisition fee and store services fee that applied under the old structureCITE:E8.
How are commission rates adjusted across payment methods under the new structure?
Apple set new App Store commissions at 26% for its own In-App Purchase (IAP) system, 20% for third-party payment processors, and 15% for external web link-out paymentsCITE:E5. Developers who qualify for reduced-rate programs, such as small-business terms, pay lower rates of 15%, 10%, and 10% respectively across the same three payment pathsCITE:E5. Apple separately confirmed that App Store commissions tied to link-out promotion of external payment options will drop to 15% under the revised termsCITE:E9.
| Payment method (App Store distribution) | Standard rate | Reduced-program rate |
|---|
| Apple In-App Purchase (IAP) | 26% | 15% |
| Third-party payment processor | 20% | 10% |
| External web link-out | 15% | 10% |
How did Apple ease entry requirements for third-party app marketplaces?
Apple removed its requirement that third-party app marketplace operators hold a €1 million letter of credit, replacing it with a set of alternative qualifying conditionsCITE:E6. Developers can now qualify by meeting a minimum financial score, being a publicly listed company, having received venture capital investment, passing a financial audit, or being a government agency, educational institution, or non-profit organization — any one of these conditions is sufficientCITE:E6.
What new payment options do developers gain under the revised terms?
Developers can now offer Apple's In-App Purchase system and alternative payment options within the same app, provided the chosen payment method stays in place for 12 monthsCITE:E10. Apple also loosened qualification requirements for alternative marketplaces; however, apps distributed via the web in the EU must still pass Apple's Notarization process for security purposesCITE:E10.
What child-protection mechanisms are strengthened under the new terms?
Apple's new terms add three child-protection rules governing how minors can complete paymentsCITE:E7. Apps in the Kids category may no longer link out to a website to complete payment under any circumstance; users under 13 cannot link out to complete web payments at all; and users under 18 who use third-party or link-out payment methods must obtain consent from a parent or guardianCITE:E7. Apple further stated that where an EU member state's local law requires parental consent for digital activity by children aged 13 or older, its protection mechanism will automatically expand to match that local requirementCITE:E11.
When does the new policy take effect, and how have the EU and developers responded?
EU developers can begin signing Apple's new commercial terms starting August 18, 2026, with all policy changes taking effect on October 1, 2026CITE:E13. A spokesperson for the European Commission welcomed Apple's move and confirmed the changes stemmed from recent close dialogue between the two sides, while stating the Commission will continue monitoring Apple's implementation of the new termsCITE:E12.
What this means: Apple's restructuring directly reworks the mechanism the European Commission fined it for under the DMA — the €500 million anti-steering penalty from April 2025 preceded a fee model rebuilt around transaction value rather than installsCITE:E2CITE:E8. The gap between the 26% App Store IAP rate and the 5% Core Technology Commission for off-Store distributionCITE:E5CITE:E4 shows Apple still prices its own payment rail well above the alternative-distribution fee it created for DMA compliance, even as the European Commission signals it will keep watching how the October 1 rollout unfoldsCITE:E12CITE:E13.