This week, Apple announced significant changes to its business terms for apps in the European Union, aiming to resolve ongoing disagreements with the European Commission under the Digital Markets Act (DMA). The updates introduce a unified set of commission-based terms for all developers distributing apps in the EU, eliminate several prior fees, and take effect on October 1st. Developers can begin signing the new terms immediately. The European Commission welcomed the changes and said it would monitor their implementation. Apple stated the revisions follow close collaboration with regulators and reduce complexity by moving every developer to a single business model similar to those offered in markets like Japan and Brazil. Key Changes: Before vs. After Previously, Apple’s EU fee structure—particularly after adjustments in 2024 and mid-2025 to address DMA requirements—was multi-layered and often criticized as overly complex. Under the earlier alternative business terms: • Developers using the App Store typically paid a reduced commission of 17% (or 10% for Small Business Program participants and certain subscriptions) on digital goods and services, plus a 3% fee if using Apple’s In-App Purchase system (effectively around 20% or 13% total in many cases). Traditional standard terms remained closer to the global 30%/15% rates. • Apps directing users to alternative payments or external links faced additional charges, including an initial acquisition fee (often 2–5% on sales from new users for a set period) and a store services fee (tiered at 5% for limited services or 10–13% for fuller App Store features). • High-volume apps incurred a Core Technology Fee (CTF) of €0.50 for each first annual install over a one-million threshold, applying to apps distributed via the App Store, alternative marketplaces, or the web. This per-install model applied mainly to a small percentage of large-scale developers. These elements created variable total costs depending on distribution method, payment processing, user acquisition timing, and scale, which regulators argued discouraged alternative distribution channels. Under the new terms effective October 1st: • App Store apps using Apple In-App Purchase: 26% commission (15% for the vast majority of developers in the Small Business Program, Mini Apps Partner Program, Video Partner Program, or for auto-renewing subscriptions after the first year). • App Store apps using alternative payment processing: 20% commission (10% for eligible program participants). • App Store apps that link out to complete purchases: 15% commission (10% for eligible program participants). • Apps distributed via alternative app marketplaces or the web: A flat 5% Core Technology Commission on digital transactions. The prior Core Technology Fee (per-install), initial acquisition fee, and store services fee are eliminated entirely. The new Core Technology Commission replaces the CTF specifically for outside-App Store distribution. Apple will also allow developers to offer Apple In-App Purchase alongside alternative payment options (previously restricted in the EU), subject to presentation rules and a requirement to maintain chosen options for 12 months. Additional child safety measures apply to alternative payments, including parental gates and restrictions on linking out for younger users. Eligibility to operate alternative marketplaces or distribute via the web has been expanded to more companies meeting financial stability or other criteria. All alternatively distributed apps still require Apple’s notarization review. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple simplifies EU App Store fees, replaces complex structure with flat commissions appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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