Apple Overhauls EU App Store Terms: Replaces Per-Install Fee with 5% Commission

European iPhone users and the developers who build for them are facing a reshaped app economy. After months of regulatory friction, Apple has overhauled its business terms in the European Union, abandoning its most controversial fees. While the company frames this as 'close collaboration' with regulators, the changes follow a formal non-compliance finding under the Digital Markets Act (DMA).[1][4]

The most significant change, announced August 18 and taking effect October 1, 2026, is the elimination of the Core Technology Fee (CTF). Previously, Apple charged developers €0.50 for every annual app installation over one million, a policy that critics argued could bankrupt developers of viral free apps.[1][2]

In its place, Apple is introducing the Core Technology Commission (CTC). Apps distributed via alternative marketplaces or directly from the web will now pay a flat 5% commission on digital transactions. This shifts the burden from a scale-dependent tax on downloads to a predictable cut of actual revenue, though it ensures Apple still takes a cut of transactions that occur entirely outside its storefront.[1]

Inside Apple's own App Store, the traditional fee structure is also shrinking. The standard 30% commission for using Apple's In-App Purchase system is dropping to 26%. For developers in the Small Business Program, the rate falls to 15%.[1]

Developers opting to use alternative payment processors within the App Store will pay a 20% commission, or 10% for small businesses. Those who simply link out to the web to complete a transaction will pay 15%, which also drops to 10% for small businesses.[1]

In a notable shift, Apple will now allow developers to offer its proprietary In-App Purchase system alongside alternative payment methods simultaneously—a practice previously banned. However, developers must commit to their chosen combination of payment options for a 12-month period, limiting their ability to dynamically test payment flows.[1][4]

The new flexibility comes with stringent guardrails for younger users. Apps in the 'Kids' category are banned from including external transaction links. Furthermore, users under 13 are completely blocked from web-based transactions, while those under 18 will encounter a mandatory parental gate before using alternative payment methods.[1]

Apple is also lowering the barrier to entry for companies wanting to operate their own alternative app marketplaces. The updated terms expand eligibility, allowing entities that meet moderate financial stability scores, have venture funding, or are publicly traded to launch their own iOS storefronts.[1]

The European Commission, which had previously issued preliminary findings of non-compliance against Apple under the DMA, publicly welcomed the changes. The Commission stated it will monitor the implementation to ensure users have a full and effective choice.[3][4]

Not everyone is satisfied. Epic Games, a long-time Apple antagonist, continues to argue that any fee above zero percent for purchases made outside the App Store violates the DMA, signaling that the legal battles over iOS distribution are far from over.[3]

As the October 1 deadline approaches, developers must weigh the math of the new unified terms. While the 5% CTC provides a financially viable path for alternative distribution, Apple's continued requirement for 'Notarization'—a mandatory security review—and its complex web of payment tiers ensure the tech giant retains ultimate oversight of the iOS ecosystem.[1][4]