Apple recently took steps to end its long-running battle with the European Commission over app distribution by overhauling developer terms across the European Union.
Under these new terms the company will charge a 5% Core Technology Commission on digital sales from outside its store.
The company announced on the 18th of August 2026 that it will eliminate its controversial per-install Core Technology Fee, which drew heavy criticism from competition regulators for hindering alternative marketplaces.
In its place, Apple is introducing the new 5% Core Technology Commission applied strictly to digital transactions in apps distributed via third-party stores or web downloads.
Under the altered terms, which take effect at the start of October, Apple is also dropping initial acquisition and store services fees.
Standard App Store commission for digital goods using Apple In-App Purchase will sit at 26%, dropping to 15% for auto-renewing subscriptions after year one and for members of its small business programme.
App Store developers utilising alternative payment processors will pay 20% commission, or 10% under reduced-rate programmes, while those linking users to external websites to complete purchases will pay 15%, cut to 10% for qualified smaller entities.
The overhaul represents an evolution from Apple’s earlier attempt to comply with the Digital Markets Act (DMA) in mid-2025, when it first proposed revised fee frameworks and alternative payment rules.
Following continued pushback from developers and European regulators over those terms, Apple’s latest attempt aims to resolve remaining disputes and establish a single, unified business structure across the region.
In a major shift, Apple will now allow developers in the EU to offer its proprietary payment engine alongside alternative processing options within the same app. To maintain consistency, developers must commit to their chosen set-up for at least 12 months.
To address regulatory concerns regarding user safety, Apple introduced targeted child safety measures for alternative payment flows. Apps in the Kids category are barred from linking to external sites for transactions.
Furthermore, apps using alternative billing must enforce parental permissions for users under 18 and block external links entirely for under 13s.
Additionally, Apple expanded eligibility requirements for operators of third-party marketplaces and web distribution. Qualifying entities now include publicly traded companies, venture-backed startups, audited firms, government agencies and not-for-profits.
However, Apple stated all external applications must clear its baseline security review to protect users from potential software threats before installation.
Source: Mobile World Live
Image Credit: EU
Source: Tahawul Tech