Apple is replacing its controversial per-install fee with a unified commission structure as it seeks to settle a years-long dispute with EU regulators.
Apple announced Tuesday that it will replace its EU-specific Core Technology Fee with a 5% Core Technology Commission on digital transactions involving apps distributed through alternative app marketplaces or directly from the web. The company is also eliminating its Initial Acquisition Fee and Store Services Fee.
The changes take effect Oct. 1, and developers can agree to the updated terms now. Apple said the new system will put developers distributing apps in the EU under one set of business terms. For App Store apps using Apple’s In-App Purchase system, the commission will be 26%. Developers in qualifying Apple programs, as well as auto-renewing subscriptions after their first year, will pay 15%.
Alternative payment processing inside an app will carry a 20% commission, or 10% for qualifying developers. Apps that send users to the web to complete purchases will face a 15% commission, or 10% for qualifying developers, on applicable purchases made within seven days of a link tap. Developers can offer alternative payment methods alongside Apple’s In-App Purchase option but must maintain their chosen combination of payment options for 12 months.
More room for alternative app stores
Apple is also widening eligibility for companies that want to operate alternative app marketplaces or distribute iPhone and iPad apps directly from their websites.
Companies can qualify through several routes, including public ownership, qualifying venture funding, a financial audit, a Dun & Bradstreet financial-stability rating, or status as a government entity, educational institution or nonprofit. Apple also lists a $1 million standby letter of credit or 1 million first annual installs worldwide as qualifying options.
The change could lower the financial and organizational barriers that have made alternative distribution difficult. TechCrunch noted that Apple previously required developers to meet specific financial or distribution milestones.
Apps distributed outside the App Store will still have to pass Apple’s Notarization process, which Apple says checks basic functionality, privacy, device integrity, known malware and other serious security threats.
Apple tightens protections for children
Kids-category apps cannot send users to websites to complete purchases, and alternative-payment purchase flows must sit behind a parental gate.
For users under 13, alternative payments require a parental gate and out-of-app purchase offers are prohibited. Users ages 13 to 17 must encounter a parental gate for both in-app alternative payments and out-of-app purchase offers.
Those age thresholds can be higher in EU countries where local rules require parental consent for older children.
A meaningful concession, but not a free pass
The changes matter because they reshape the economics of distributing software on Apple devices without removing Apple’s role entirely.
Developers now get more choice over payments and distribution, but alternative channels still carry Apple commissions and reporting requirements. Meanwhile, Apple retains control over notarization and eligibility for alternative marketplaces.
The move also appears designed to close a regulatory chapter that has been expensive for Apple. TechRepublic reported that the European Commission fined the company €500 million in 2025 for violating the Digital Markets Act, while the Commission has continued scrutinizing Apple’s compliance.
The Commission welcomed the changes but said it will monitor how Apple implements them, according to Bloomberg. The practical test will begin after the revised terms take effect Oct. 1, when regulators and developers can assess whether Apple’s new model meaningfully improves competition.
Read more: As Apple adjusts to Europe’s digital-market rules, EU AI Act enforcement is also raising the compliance stakes for technology vendors and channel partners.