Following close collaboration with the European Commission, Apple has revealed modifications to its business terms for applications in the European Union. The update introduces unified developer terms, replaces the per-install Core Technology Fee with a 5 percent transaction commission, and permits alternative payment processing alongside Apple In-App Purchase starting October 1.
Unified Business Terms and Commission Restructuring
Apple’s latest pivot addresses disagreements with the Commission over business terms and alternative distribution. By moving every developer distributing software in the EU to a single set of business terms, the company is attempting to reduce complexity. Developers can sign these new terms immediately, with changes scheduled to go into effect on October 1.
Under the revised model, the Core Technology Fee—previously levied as a per-install charge for developers achieving extraordinary scale—is replaced. In its place, Apple is rolling out the Core Technology Commission: a 5 percent commission applied to digital transactions occurring in apps distributed outside the App Store.
Furthermore, Apple has eliminated both the initial acquisition fee and store services fee. Additionally, commission percentages across alternative app payments, alternatively distributed apps, and the App Store have been modified to account for the diverse ways Apple delivers value to developer offerings, whether or not they rely on Apple In-App Purchase and/or the App Store.
Payment Processing and Alternative Distribution Frameworks
For App Store apps utilizing Apple In-App Purchase, the commission is 26 percent. However, the vast majority of developers—including those enrolled in the App Store Small Business Program, Mini Apps Partner Program, or Video Partner Program, as well as developers managing auto-renewing subscriptions past their first year—benefit from a 15 percent rate.
Where third-party mechanisms enter the stack, the math shifts. According to Mirage News, apps using alternative payment processing will face a 20 percent commission, which drops to 10 percent for developers in the programs mentioned above. For developers choosing to link out of the app to complete purchases externally, the fee structure is 15 percent generally, and 10 percent for developers in the programs mentioned above.
Crucially, developers can now offer Apple In-App Purchase side-by-side with alternative payment options, which had not previously been permitted in the European Union. To provide consistency and clarity for users, developers must select their payment options—whether Apple In-App Purchase, alternative payment processing in their app, linking out to the web, or a combination—and maintain those options for 12 months.
Child Safety Mandates and Platform Eligibility
Opening the ecosystem to external payment processors introduces distinct safety vectors, prompting Apple and the European Commission to implement child safety measures. To minimize the danger of fraud or scams directed at children, applications assigned to the Kids category on the App Store will be barred from incorporating website links for completing transactions.
For users under 18, any application from the App Store employing alternative payment processing or external web-links must include a parental gate, requiring younger users to involve their parent or guardian before making a purchase. To safeguard against scam threats aimed at younger children, App Store programs tailored for users under 13 are prohibited from providing external website links for payment transactions. These safeguards will adjust proportionally in EU member nations that mandate parental authorization for online activities concerning minors past the age of 13.
Alongside these financial and safety updates, Apple is expanding who is eligible to operate an alternative app marketplace or distribute apps via the web.
