Apple will phase out its per-install Core Technology Fee in the EU from October 1, replacing it with a 5% revenue-based commission on qualifying digital transactions outside the App Store, reshaping developer payment models amid regulatory pressure.
Apple will end its per-install Core Technology Fee in the European Union on October 1 and replace it with a 5% Core Technology Commission on qualifying digital transactions made outside the App Store, in a move that reshapes how developers pay for apps distributed through alternative marketplaces or directly from their own websites. The change follows months of pressure from EU regulators over Apple’s compliance with the Digital Markets Act and is meant to replace a cost tied to installation volume with one linked to actual sales.
According to Apple’s revised terms, the new charge applies to paid apps, subscriptions and other digital goods or services sold through apps distributed via alternative marketplaces or Web Distribution. That means a free app with no qualifying digital sales would not face the commission simply because it becomes popular. The commission also applies to alternative app marketplaces themselves when they generate qualifying digital transactions, including one-off purchases and auto-renewing subscriptions.
The shift removes a fee structure that had been based on scale rather than revenue. Under the previous model, developers paid €0.50 for each first annual install above one million in a rolling 12-month period, a system that could penalise fast-growing free products before they had established a business model. The new arrangement is designed to give developers more predictable costs, while preserving Apple’s claim that its operating system and distribution technologies still have commercial value even when the App Store is not involved in the sale.
Apple is also introducing a broader EU framework in which all developers in the bloc will operate under one set of business terms, replacing the split between standard global conditions and the alternative terms introduced in 2024. The company said the separate Initial Acquisition Fee and Store Services Fee will disappear as part of the restructure. Developers will still need to remain in the Apple Developer Program, use supported installation systems and pass notarisation, a limited review intended to catch malware and serious platform threats.
The changes do not make the App Store a single-price environment. Apple will keep different commission rates for in-App purchases and alternative payment routes inside App Store apps, with the standard App Store In-App Purchase rate set at 26%, or 15% for eligible developers and subscriptions after the first year. Apps that use an alternative payment provider inside the app can face a 20% commission, with lower rates available in some cases, while external purchase links can attract different charges again. Apple also plans to update the installation process for alternative marketplaces and web-distributed apps, and to add an API for starting web app downloads from within another app.
The European Commission has welcomed the revised terms and will monitor how they are implemented, suggesting the October rollout is a major operational shift but not the end of the dispute. Epic Games, however, has remained hostile, calling Apple’s revised charges “junk fees” and arguing that the new framework still does not open the iPhone software market enough. For developers, the immediate effect is clearer forecasting: a free app no longer accrues cost merely by being downloaded, but a paid service or subscription business outside the App Store will now owe a commission that rises directly with revenue.
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