Apple said on Tuesday it will impose a 5% commission on digital transactions for apps distributed outside its App Store in the European Union, supplanting a more elaborate fee framework as it seeks to align with the bloc's Digital Markets Act.
The company stated that the new approach replaces the prior arrangement that included an initial acquisition fee and a store services fee. Under the revised terms, apps delivered through alternative app marketplaces or directly via the web will be subject to a 5% Core Technology Commission.
For apps that remain listed in the App Store but opt to use alternative payment processing, Apple said it will apply a 20% commission. That rate could be reduced to 10% under Apple’s small business programme for qualifying developers.
Apple noted these changes will take effect on October 1. The company said the updated single set of terms for developers operating in the EU will mirror commission-based arrangements it already uses in markets such as Japan and Brazil.
The move follows prior adjustments to App Store rules and fees that Apple implemented last year after EU antitrust regulators ordered the company to remove commercial barriers that they said impeded developers from directing customers away from the App Store. Regulators had criticised Apple’s prior conditions - including the Core Technology Fee - on the grounds that they discouraged developers from using alternative distribution channels on Apple’s iOS mobile operating system.
Apple said the new terms eliminate both the initial acquisition fee and the store services fee that were charged under the previous system. The company described the changes as resolving disagreements with the EU and the European Commission over these matters.
The European Commission said it welcomed Apple’s announcement and will monitor how the changes are implemented. Apple also noted it is still contesting in litigation what it can charge developers in the United States.
Developers have long faced commission rates that could reach up to 30% on in-app purchases of digital goods and services; the new EU structure moves to a simpler, lower-percentage model for certain distribution methods and payment arrangements within the region.
Sectors affected: mobile app developers, digital services platforms, payments processors and app marketplaces operating in the EU.