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Apple To Charge 5% Commission On Apps Distributed Outside App Store In EU

Apple will introduce new EU developer terms from Oct. 1, including a 5% commission on digital transactions outside the App Store under its revised rules.

Apple To Charge 5% Commission On Apps Distributed Outside App Store In EU
Apple is changing EU App Store rules with new commissions for alternative payments and app distribution.
Photo Source: Unsplash
  • Apple will implement a 5% commission on digital transactions outside the App Store from Oct 1
  • Apps using alternative payment processing in the App Store face a 20% commission or 10% for small developers
  • The new terms remove the previous acquisition and store services fees for EU developers

Apple announced on Tuesday that it is changing how it charges developers in the European Union as part of its efforts to comply with the bloc's Digital Markets Act, replacing its existing fee structure with a simpler commission-based system.

Under the new terms, Apple will introduce a 5% Core Technology Commission on digital transactions for apps distributed outside the App Store. The changes will take effect from Oct. 1.

The move follows a long-running dispute between Apple and EU regulators over the company's App Store rules and the fees developers face when using alternative methods to distribute apps or process payments.

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Apple Revises EU App Store Fee Structure

Apple said apps distributed through alternative app marketplaces or directly via the web will be subject to a 5% Core Technology Commission on digital transactions.

For apps distributed through the App Store that use alternative payment processing, Apple will charge a 20% commission. The rate could fall to 10% for developers eligible under Apple's small business programme.

The new structure also removes the initial acquisition fee and store services fee that formed part of Apple's previous system for developers in the EU.

Apple said the revised terms are aimed at addressing concerns raised by the European Commission over how its App Store business operates in the bloc.

Why Apple Is Changing Its App Store Rules

Apple has faced pressure from EU regulators to make it easier for developers to direct users outside the App Store and offer alternative payment and app distribution options.

The company had previously changed its App Store rules and fee structure in the EU after regulators raised concerns that some of its commercial terms created barriers for developers seeking to operate outside Apple's traditional App Store model.

The European Commission had also raised concerns over Apple's Core Technology Fee, arguing that the company's conditions could discourage developers from using alternative app distribution channels on iOS.

The Commission has welcomed Apple's latest changes and will monitor how the new rules are implemented.

Apple To Introduce Single Set Of EU Terms

Apple will introduce a single set of business terms for developers operating in the European Union, replacing the multiple frameworks that had previously been available.

The company said the revised structure will follow a commission-based approach similar to arrangements it has introduced in other markets facing regulatory changes.

The changes mark another significant shift in Apple's App Store business model, which has traditionally relied on commissions of up to 30% on in-app purchases of digital goods and services.

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