Apple Surrenders to the EU, Drops Controversial App Store Fees

Following months of intense back-and-forth friction with the European Union antitrust regulators, Apple is finally dropping its confusing rules in favour of a single, unified fee framework starting October 1.

Under the previous setup, software creators who wanted to distribute apps outside the App Store faced a confusing mix of extra charges. This included the initial acquisition fee, store services fee, and the widely criticized Core Technology Fee, which charged 0.50 Euros for every first app installation per year over a one-million threshold.

Regulators argued these fees created artificial barriers that made rival marketplaces unviable. To fix this, Apple is doing away with all three of those separate charges. Instead, it is launching a streamlined model centered around a new Core Technology Commission.

Under the updated terms, developers who host their applications on third-party app stores or offer direct web downloads will pay a flat 5% commission on digital purchases.

For developers who choose to stay on the main App Store, the commission for standard in-app purchases drops to 26%. Small businesses, long-term subscriptions after their first year, and partners enrolled in specific developer programs will see that rate lowered to 15%.

Apple is also granting developers greater flexibility regarding how they handle money. For the first time in the European Union, creators can offer alternative checkout options alongside Apple In-App Purchase within the same application. Those using third-party payment gateways inside an App Store app will pay a 20% commission, or 10% for small businesses.

If developers direct users out of the app to complete purchases on the web, Apple’s cut drops to 15%, or 10% for qualifying small developers.