Apple Changes EU App Business Terms and Replaces Core Technology Fee

Following close collaboration with the European Commission, the tech giant is dropping its per-install Core Technology Fee for hyper-scale apps, replacing it with a flat 5 percent Core Technology Commission on non-App Store digital transactions, effective October 1.

Unified Terms and the Demise of the Core Technology Fee

Under the updated framework published on apple.com, the company is migrating every developer distributing applications within the EU to a single, unified set of business terms.

The most significant engineering relief is the complete elimination of the contentious Core Technology Fee (CTF).

Instead, Apple is introducing a straightforward Core Technology Commission. If an app is distributed outside the App Store through alternative marketplaces or direct web distribution, developers will pay a flat 5 percent commission on digital goods and services transactions.

Recalibrating Commission Tiers Across Alternative Payments

Under the revised agreements available now in the Apple Developer Program License Agreement, commission percentages vary depending on the chosen payment processing architecture. Developers can finally integrate alternative payment options directly alongside Apple In-App Purchase (IAP)—a practice previously restricted in the region.

According to official documentation, the commission schedules break down into precise operational margins:

• App Store apps utilizing native IAP: 26 percent standard commission.
• Small businesses and programs: A reduced 15 percent rate for developers qualifying under the App Store Small Business Program, Mini Apps Partner Program, Video Partner Program, or for auto-renewing subscriptions past year one.
• App Store apps using alternative payment processing: 20 percent standard commission, dropping to 10 percent for qualified small business and partner programs.
• App Store apps linking out to the web: 15 percent commission, dropping to 10 percent for eligible small business programs.
• Alternatively distributed apps (web and alternative marketplaces): 5 percent Core Technology Commission.

Architects choosing alternative payment routes must commit to their selected payment configuration for a mandatory 12-month lock-in period.

Child Safety Mandates and Ecosystem Guardrails

To address this, Apple has codified mandatory safety protocols into the updated EU framework.

Photo: apple.com

Apps categorized under the Kids section on the App Store are strictly barred from utilizing out-of-app web links for payment processing. Furthermore, any application serving users under the age of 18 that relies on alternative billing or external web links must implement a robust parental gate.

For children under 13, external transaction linking is entirely disabled across all EU-distributed software. In member states where local legislation mandates parental consent thresholds for older demographics, these automated gates scale accordingly.

Expanded Distribution and Next Steps

Beyond billing changes, Apple is broadening the qualification criteria for entities wishing to operate alternative app marketplaces or manage native web distribution channels. Engineering teams can review the updated contractual language today.

Developers seeking architectural clarity can schedule a 30-minute online technical consultation via developer resources. All agreed-upon modifications officially go live on October 1, 2026, establishing a predictable, codified compliance baseline for the European digital single market.