Apple is overhauling its App Store fee structure in the European Union, introducing a 5 percent commission on digital transactions for apps distributed outside the App Store as it seeks to comply with the EU’s Digital Markets Act (DMA).
The new fee system, which takes effect on October 1, 2026, replaces Apple’s more complicated charging model for alternative app distribution and payments. The changes follow sustained pressure from European antitrust regulators, which have challenged Apple’s rules on the grounds that they could discourage developers from using competing app marketplaces, web distribution and alternative payment systems, Reuters news report said.
Apple Sets 5 Percent Core Technology Commission
Under the revised EU terms, apps distributed through alternative app marketplaces or directly through the web will face a 5 percent Core Technology Commission on digital transactions.
The new approach replaces Apple’s previous Core Technology Fee structure and eliminates the initial acquisition fee and store services fee charged under the earlier system.
By moving toward a transaction-based percentage, Apple is simplifying the economics for developers that distribute iPhone apps without using the traditional App Store channel.
The revised terms will become effective on October 1, with Apple saying the changes are intended to resolve its disagreements with the European Commission over alternative app distribution and payments.
App Store Alternative Payments Face 20 Percent Commission
Developers that continue distributing their apps through Apple’s App Store but use an alternative payment processor will face a 20 percent commission.
However, qualifying developers participating in Apple’s small business programme could see the commission reduced to 10 percent.
The revised structure therefore creates two important fee levels in the EU: 5 percent for digital transactions involving apps distributed through alternative marketplaces or the web, and as much as 20 percent for App Store apps using alternative payment processing.
The small-business rate can bring the latter fee down to 10 percent.
Apple Moves Away From App Store Commission of Up to 30 Percent
Apple’s traditional App Store business model has historically required developers to pay commissions of up to 30 percent on in-app purchases involving digital goods and services.
The new European model significantly changes that structure for developers choosing alternative distribution and payment options.
A developer distributing an app outside the App Store could face a 5 percent commission on applicable digital transactions under the new terms, compared with the traditional App Store commission that can reach 30 percent.
Apple said it plans to introduce a single set of terms for developers operating in the EU, creating a more standardized commission-based structure.
EU App Store Changes Follow Digital Markets Act Pressure
Apple modified its EU App Store rules and fees in 2025 after European antitrust regulators ordered the company to remove commercial barriers that they said restricted developers from directing customers outside Apple’s ecosystem.
Regulators subsequently criticized Apple’s conditions, including its Core Technology Fee, arguing that they could discourage developers from using alternative distribution channels available on iOS.
The latest restructuring represents another major adjustment to Apple’s European business model as the company attempts to satisfy the requirements of the Digital Markets Act.
The European Commission welcomed Apple’s latest changes and said it would monitor their implementation.
EU Fee Model Follows Changes in Japan and Brazil
Apple said the new European terms are similar to the commission-based arrangements it offers in markets including Japan and Brazil, where regulators have also pushed for greater competition in mobile app distribution and payments.
In Brazil, Apple agreed to allow developers to distribute iOS applications through alternative marketplaces and process payments outside Apple’s system following an agreement with competition regulator CADE. The Brazilian dispute had been opened in 2022, while Apple agreed to make changes when it settled the matter in December 2025. The new capabilities became available as part of iOS 26.5 in June 2026.
Epic Games Criticizes Apple’s New 5 Percent Fee
The new EU structure has not ended criticism of Apple’s App Store economics.
Epic Games, maker of Fortnite and a long-running legal opponent of Apple over App Store fees, criticized the new commission structure and argued that it does not sufficiently open Apple’s mobile ecosystem to competition under the Digital Markets Act.
Apple also continues litigation in the United States over the fees it can charge developers.
The regulatory pressure means Apple’s App Store business model is increasingly diverging across major markets, with the EU now moving toward a structure where alternative distribution carries a 5 percent commission, App Store apps using alternative payments can face 20 percent, eligible small businesses can pay 10 percent, and Apple’s traditional App Store commission has historically reached 30 percent.
Apple App Store Fee Changes Could Reshape EU Developer Economics
The October 1, 2026 changes could make alternative app distribution more economically attractive for some European developers by replacing multiple fees with a single 5 percent Core Technology Commission.
For Apple, however, the challenge is balancing regulatory compliance with protection of the highly profitable App Store ecosystem. The shift from commissions of up to 30 percent toward alternative models carrying rates of 5 percent, 10 percent or 20 percent illustrates how the Digital Markets Act is reshaping Apple’s relationship with developers in one of its most important markets.
BABURAJAN KIZHAKEDATH