Apple Overhauls App Store Commission Structure in EU

Starting October 1, 2024, Apple is implementing updated business terms for developers distributing apps within the European Union. The reform aims to meet the requirements of the Digital Markets Act (DMA) and resolve outstanding disputes with European regulators.

What Changes for App Store Developers

The company is introducing a unified set of rules affecting software distribution methods. Key aspects of the changes include:

• Core Technology Fee: Set at 5% and applies to apps installed outside the App Store.
• In-app Purchase Commission: Set at 26% for Apple’s systems, but drops to 20% when using alternative payment solutions.
• Link-out Fee: A 15% commission is introduced on transactions processed via external payment links within an app.

Financial Terms and Removal of Old Fees

To optimize calculations, Apple is simplifying its fee structure. The company is eliminating several charges, including the Core Technology Fee of €0.50 ($0.56) for every first annual install after the one-million-install threshold. Initial acquisition fees and store service fees are also being dropped.

Special Loyalty Programs

Developers participating in partner programs are eligible for preferential terms:

Requirements for Third-Party App Marketplaces

Distributing apps directly via websites remains an EU-exclusive privilege. Third-party marketplace operators face strict requirements: the store must be managed by an official legal entity that has undergone an audit by a certified accountant.

Protecting Minors

The updated policy focuses on child safety:

• A total ban on external links for completing transactions in apps for children.
• Users under 13 are prohibited from navigating to external sites to make purchases.
• For individuals under 18, parental consent is required to use third-party payment systems.

Stability of the Rules

Apple emphasizes that while developers can offer users a combination of internal and external payment options, the chosen scheme must be maintained for at least one year. The company states this measure is intended to ensure a predictable user experience.

Apple’s new terms significantly alter the established App Store model in the European market. Developers gain more opportunities for alternative distribution and payments but simultaneously face a new commission system and additional requirements. This reform is the latest result of pressure from European regulators, demonstrating the ongoing impact of the DMA on the business models of major tech companies.