Apple Overhauls EU App Store Fees to Settle Regulatory Disputes
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The tech giant is replacing its per-install Core Technology Fee with a simplified commission structure to comply with the Digital Markets Act.
Apple has announced a revised set of App Store business terms for the European Union, effective October 1, intended to resolve disputes with the European Commission regarding alternative distribution and business terms.
According to reporting from TechCrunch and The Verge, Apple is scrapping several previous charges, including the store services fee, the initial acquisition fee, and the Core Technology Fee—a €0.50 charge per annual install over 1 million. In its place, Apple will implement a 5% Core Technology Commission on digital transactions for apps distributed via the web or third-party marketplaces.
For apps within the App Store, Apple is adjusting its commission rates. Apps using Apple's in-app purchase system will face a 26% fee, while those using alternative payment providers will pay 20%. Developers linking out of an app for purchases will be charged a 15% commission. Apple noted that reduced rates remain available for developers in the Video Partner Program, Mini Apps Partner Program, and App Store Small Business Program.
Apple is also loosening eligibility requirements for developers operating third-party marketplaces. TechCrunch reports that Apple now accepts various proofs of financial stability, such as being a publicly traded company or providing a financial audit from a licensed accountant, rather than strictly requiring a history of 1 million annual EU installs.
These changes follow a period of intense regulatory pressure. The Verge reports that Apple recently lost a bid to exclude iOS and the App Store from the Digital Markets Act (DMA). Additionally, TechCrunch notes that regulators previously fined Apple €500 million for DMA noncompliance, while The Verge reports the Commission also found Apple's "anti-steering" practices violated the law.