Apple is simplifying the cost of going outside its App Store in Europe. On Aug. 18, the company announced new business terms for apps distributed in the European Union, replacing several overlapping fees with a unified model that takes effect Oct. 1, 2026.
The changes retire the Core Technology Fee under Apple's previous alternative EU terms and replace it with a 5% commission on covered digital transactions for apps distributed outside the App Store. Apple is also changing commissions for App Store payments and giving developers more flexibility over how they distribute apps and collect payments.
The updated EU business terms also eliminate Apple's Initial Acquisition Fee and Store Services Fee. Greater flexibility comes with tradeoffs: moving commerce outside Apple's systems can shift tax, reporting, payment processing and customer-support responsibilities to developers.
Apple is taking a different approach in the US, where it is seeking court approval to impose fees on purchases made through external app links. The differing approaches show how App Store economics are increasingly diverging by market.
Apple's new EU fee structure
Under Apple's EU payment rules, purchases using Apple In-App Purchase carry a 26% commission. Alternative in-app payment processing carries a 20% commission, while qualifying purchases made after users follow an actionable link outside the app are charged 15%.
Reduced rates are 15% for Apple In-App Purchase and 10% for alternative processing or qualifying out-of-app offers. They apply to eligible developers in programs including Apple's Small Business, Mini Apps Partner and Video Partner programs, as well as qualifying auto-renewing subscriptions after their first year.
Apps distributed through an alternative app marketplace or directly from a developer's website instead face a 5% Core Technology Commission on covered sales of paid apps and digital goods or services.
Alternative payments shift more operational work to developers. They must report relevant transactions to Apple, handle applicable taxes on externally processed sales and manage issues such as refunds and subscriptions that Apple would otherwise support.
Developers also generally must keep their chosen combination of Apple In-App Purchase, alternative processing and actionable out-of-app offers consistent across EU storefronts for 12 months. That limits how quickly companies can reverse a payment strategy if the economics or implementation prove unfavorable.
Alternative distribution opens further
Apple is also widening access to alternative distribution. Under its marketplace eligibility requirements, organizations can qualify through routes including public-company status, qualifying venture funding, an approved financial audit, a $1 million standby letter of credit or more than one million first annual installs worldwide. Qualifying government entities, educational institutions and nonprofits can also be eligible.
The changes follow years of pressure under the Digital Markets Act. In April 2025, the European Commission fined Apple €500 million after finding that its App Store rules prevented developers from fully steering users toward alternative offers.
The dispute extends beyond App Store fees. Apple has delayed Siri AI on EU iPhones and iPads amid disagreements over the DMA, while European officials have challenged Apple's interpretation of the law. Apple CEO Tim Cook also held DMA discussions with EU officials in July as the two sides continued talks.
For companies distributing apps in Europe, lower commissions are only part of the calculation. Payment processing, compliance, reporting and support costs will help determine whether moving more commerce outside Apple's ecosystem produces meaningful savings.
Read more: The DMA is reshaping other mobile platforms too, with EU regulators also pushing changes that could open Android to rival AI assistants.
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