Apple overhauls EU app business terms, replacing fees with a 5% commission and expanding alternative payments

Apple said it has reached agreement with the European Commission on updated business terms for apps distributed in the European Union, and will roll out a simplified framework starting October 1. The company framed the update as a way to resolve disagreements over commercial terms and alternative distribution models in the EU.

Under the new approach, Apple will move to a single set of business terms for all EU developers that distribute apps in the region. Apple said developers can sign the new terms immediately, and that the changes will take effect on October 1. The company also said the update reduces complexity by unifying how different EU distribution paths are governed.

Central to the update is how Apple would charge commissions when developers sell digital goods and services. Apple said it will charge a commission on the sale of digital goods and services, and it is replacing the Core Technology Fee with the Core Technology Commission for certain alternative distribution. The Core Technology Fee, described by Apple as a per-install fee that applies to developers that reach extraordinary scale, will be replaced with a Core Technology Commission that is a flat 5% commission on digital transactions for apps distributed outside the App Store.

Apple also said the updated terms eliminate an initial acquisition fee and a store services fee. In addition, the company said it is adjusting commission rates across multiple payment and distribution setups, including the App Store and alternative app payments and alternatively distributed apps. Apple did not provide the full commission schedule in its announcement, but it said the rates reflect the different ways the company creates value for developers, including whether they use the App Store and/or Apple In-App Purchase.

For payments, Apple said Apple In-App Purchase, which it describes as the safest and most trusted way for users to purchase and download apps with secure payments, will be allowed alongside alternative payment options in the EU. Apple In-App Purchase had not previously been permitted to run alongside alternative payment routes in the EU under its prior rules, according to Apple’s statement.

Developers that distribute apps in the EU will be able to choose payment options among Apple In-App Purchase, alternative payment processing inside the app, linking out to the web, or a combination of these approaches. Apple said developers must maintain their selected payment options for 12 months and that alternative payment use is subject to presentation requirements intended to give users a consistent and transparent experience.

Apple also tied the payment changes to child safety. The company said it and the Commission have implemented child safety protections for alternative payments intended to match measures already in place in other markets. Apple said in EU member states that require parental consent for digital actions for children older than 13 years old, those protections will scale accordingly.

On distribution mechanics, Apple said it is expanding eligibility to operate an alternative app marketplace or distribute apps via the web in the EU. Companies will qualify if they meet conditions designed to account for the fact that web distribution, available only in the EU, does not have a marketplace operator standing behind it or ongoing oversight comparable to the kind Apple provides through the App Store. Apple argued that this could let a bad actor distribute via the web for a long time without detection, which is why Apple will continue to require alternatively distributed apps to go through Notarization.

Notarization, as described by Apple, is a baseline review focused on basic functionality and protection from serious threats. Apple did not spell out what categories of threats are checked or how the review differs from App Store review, but it said the process is intended to keep EU users safe even when alternatives to the App Store are allowed.

What Apple did not disclose in the announcement is the size of any remaining fees beyond the 5% Core Technology Commission and the specific revised commission percentages for each scenario it referenced. It also did not provide a comparative chart mapping old terms to new ones, or details on how Apple In-App Purchase and alternative payments will be audited for compliance with the 12-month maintenance requirement. Still, the company’s message was that the commercial and operational changes follow “close collaboration” with the Commission and are intended to settle disagreements while keeping a consistent user and safety experience.

Going forward, developers distributing apps in the EU will be watching for how quickly they can sign the new terms, whether Apple publishes the full commission structure and payment presentation requirements, and how Notarization is applied across different alternative distribution models. Regulators and consumer advocates may also focus on how the expanded alternative-payment option and child-safety scaling work in practice after October 1.