Apple's EU App Store Reforms
Apple Overhauls EU App Store Fees to Settle DMA, Expanding Alternative Marketplace Options
Key Points
Expanded eligibility for alternative marketplaces: Under the updated EU terms, publicly traded companies and those backed by venture funding now meet the eligibility threshold to operate an alternative app marketplace on iOS in Europe.
Detailed tiered rates for App Store apps: 26% for apps with in‑app purchases; 15% for Small Business/Mini Apps/Video Partner Program participants and for auto‑renewing subscriptions after year one; 20% for apps using alternative payments; 10% for developers in Apple’s programs; 15% for apps that link out to external purchases; 5% Core Technology Commission for apps distributed via the Web.
A single EU-wide set of terms will take effect from October 1, 2026, replacing the previous EU-specific terms and aligning how apps are distributed across the EU.
Regulatory context and penalties: The EU has previously imposed a €500 million penalty related to anti-steering as part of DMA enforcement, and Apple presents these reforms as a pathway toward settling the DMA dispute while broadening marketplace options.
Apple has overhauled its App Store fee structure in the European Union, scrapping the controversial per-install Core Technology Fee and replacing it with a flat 5% commission on digital transactions for apps distributed outside the App Store, according to The Next Web. The changes take effect October 1, 2026, and represent Apple's most significant concession to EU regulators since the Digital Markets Act came into force.
The move follows a €500 million penalty the EU imposed on Apple for anti-steering violations, according to Democrata. Apple says the reforms were made in close collaboration with the European Commission and are designed to settle the ongoing DMA dispute while giving developers clearer, more stable terms.
Old Per-Install Fee Scrapped, New Flat Rate Arrives
Apple's old Core Technology Fee charged developers every time a user installed an app outside the App Store. Critics called it punishing and unpredictable. Now Apple replaces it with a flat 5% Core Technology Commission on digital transactions, according to NDTV Profit. That means developers pay based on revenue earned, not installs racked up.
Apple is also removing the Initial Acquisition Fee and the Store Services Fee for apps distributed outside the App Store. The existing App Store commission structure stays in place for apps sold through Apple's own store. A single EU-wide set of terms will unify how apps are distributed across all EU member states starting October 1, 2026, according to Mobile Gamer.
New Tiered Rates Spell Out Exactly What Developers Pay
Apple now uses a tiered commission system for App Store apps. Apps with in-app purchases pay 26%. Apps using alternative payment systems pay 20%. Apps that link users to external purchases pay 15%. Developers in Apple's Small Business, Mini Apps, or Video Partner programs pay 15%, as do auto-renewing subscriptions after the first year, according to Mobile Gamer.
Apps in Apple's partner programs get a reduced 10% rate. Apps distributed through the web — not through any storefront — pay just a 5% Core Technology Commission. Apple also says developers must keep the same payment options available for a full 12-month period. That rule is meant to give users and developers more stability and predictability, according to Zamin.
Alternative Marketplaces Now Open to More Companies
One of the biggest changes involves who can run an alternative app marketplace in Europe. Under the old rules, very few companies qualified. Now, publicly traded companies and venture-backed startups both meet the eligibility threshold, according to The Next Web. That could open the door to a wave of new third-party storefronts on iOS in Europe.
Apple says the expanded eligibility is designed to make alternative marketplaces easier to launch and onboard. The company is signaling a more open approach to third-party distribution in the EU, though regulators and developers will be watching closely to see whether the new terms work in practice, according to Mobile Gamer.
€500 Million Fine and DMA Pressure Forced Apple's Hand
The EU hit Apple with a €500 million fine for anti-steering violations — blocking developers from telling users about cheaper prices outside the App Store. That penalty was a direct result of DMA enforcement, according to Democrata. Apple frames these new terms as a path to resolving that dispute entirely.
Apple's reforms also come after sustained pressure from the European Commission over DMA compliance. The company says it worked closely with regulators to shape the new terms. Critics will still question whether a 26% rate on in-app purchases is truly competitive. But the scrapping of the per-install fee removes what many developers called the single biggest barrier to leaving the App Store, according to NDTV Profit.
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