Key Takeaways
- Apple has concluded its European Commission App Store fee conflict by implementing revised terms starting October 1.
- The per-install Core Technology Fee is being eliminated and replaced with a 5% Core Technology Commission applied to digital transactions conducted outside Apple’s App Store.
- In-app purchase commissions through the App Store decrease from 30% to 26%, while smaller developers qualifying for special programs will pay 15%.
- Apps utilizing alternative payment systems face a 20% commission, while those directing users to external purchase pages will be charged 15%.
- Epic Games maintains that Apple’s 15% link-out commission remains excessive and intends to challenge the proposal within a 60-day window.
Apple has brought closure to its extended conflict with the European Commission regarding App Store commission policies, unveiling a revised fee framework that becomes effective throughout the European Union starting October 1.
The most significant modification is the elimination of the Core Technology Fee, which previously imposed per-install charges on developers after reaching one million installations within a twelve-month period. This fee structure is being superseded by the Core Technology Commission, which applies a uniform 5% fee on digital transactions for applications distributed through channels outside Apple’s App Store.
Under the revised framework, the initial acquisition fee and store services fee have been completely eliminated.
Developers who distribute their products via the App Store while utilizing Apple’s proprietary in-app purchase infrastructure will see their commission rate reduced from 30% to 26%. While this represents a moderate reduction, it applies universally to standard applications.
Those enrolled in Apple’s Small Business Program, Mini Apps Partner Program, or Video Partner Program receive more favorable terms, paying just 15% on in-app transactions. This identical 15% rate also extends to auto-renewing subscriptions following their initial year.
Applications incorporating alternative payment processing systems within the App Store environment will incur a 20% commission. Developers participating in the aforementioned qualifying programs will pay 10%.
External Purchase Links Get New Commission Tier
Applications that redirect users to external platforms to finalize purchases will be subject to a 15% commission. Smaller developers enrolled in eligible programs will pay 10%.
Applications distributed via alternative app marketplaces or directly through web channels will exclusively pay the 5% Core Technology Commission, with no additional charges.
Apple is also introducing a capability that was previously prohibited within the EU: developers can now integrate Apple In-App Purchase alongside alternative payment methods within a single application. Previously, developers were required to select one option exclusively.
Certain restrictions apply. Developers must commit to their chosen payment configuration for a minimum of 12 months. Apple justifies this requirement as necessary for maintaining user experience consistency.
Enhanced Child Protection Protocols Introduced
Apple has introduced strengthened child safety protocols aligned with the updated payment frameworks. Applications categorized under the Kids section will be prohibited from redirecting to external websites for purchase completion. For users below 18 years of age, applications employing alternative payments or external purchase links must incorporate a parental gate feature. For users under 13, external website links for transactions are completely prohibited.
Apple is also expanding eligibility criteria for entities permitted to operate alternative app marketplaces within the EU. Updated qualifying standards include public company status, backing from established venture capital, completion of financial audits, or classification as a government or nonprofit organization.
Although Apple has reached a settlement with the European Commission, Epic Games remains dissatisfied. Apple recently submitted a comparable proposal to the U.S. District Court for the Northern District of California as part of its six-year-long legal confrontation with the Fortnite developer.
Epic contends that Apple’s proposed 15% commission on link-out purchases in the United States exceeds what the Ninth Circuit authorizes, and the company has approximately 60 days to submit its formal opposition supported by expert testimony. Epic is advocating for zero commission on external link purchases for U.S. consumers.
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