Apple has overhauled its commercial terms for applications distributed in the European Union, replacing the controversial per-install Core Technology Fee with a transaction-based commission and simplifying the rules for alternative payments, web distribution and third-party app marketplaces.
The terms are available for developers to adopt immediately and take effect on October 1. They apply to every developer distributing applications in the EU, including Indian software companies, gaming studios, subscription businesses and digital-service providers serving European customers.
For applications distributed outside the App Store through an alternative marketplace or directly from the web, Apple will charge a 5% Core Technology Commission on digital transactions. This replaces the earlier Core Technology Fee, which was assessed on installations after an application crossed specified scale thresholds. Apple is also eliminating its initial acquisition fee and store-services fee under the revised framework.
Applications distributed through the App Store and using Apple’s in-app purchase system will be charged a standard 26% commission. Developers participating in designated programmes, including the App Store Small Business Program, Mini Apps Partner Program and Video Partner Program, will pay 15%. The 15% rate will also apply to qualifying auto-renewing subscriptions after their first year.
Apps using an alternative payment processor while remaining in the App Store will pay 20%, reduced to 10% for eligible programme participants. Apps that link users to an external website to complete a purchase will face a 15% commission, or 10% under the discounted programmes.
Developers will be permitted to offer Apple’s in-app purchase mechanism alongside alternative payment methods. Once selected, however, the combination of payment options must be maintained for 12 months. Apple has also added protections for younger users: Kids-category applications cannot link to external purchasing websites, while transactions outside Apple’s system involving users under 18 require a parental gate. More restrictive rules apply to users under 13.
The company is broadening eligibility to operate alternative app marketplaces and distribute software through the web. Applicants can now qualify through a moderate Dun & Bradstreet financial-stability score, public-company ownership, institutional venture funding, an audit performed by a licensed accountant, or status as a government entity, educational institution or nonprofit. This replaces narrower conditions that generally required substantial financial backing or a two-year developer history combined with more than one million first annual EU installations.
The changes follow sustained engagement with the European Commission over compliance with the Digital Markets Act, including a €500 million penalty imposed on Apple in 2025. Apple said the new framework resolves its disagreements with the Commission over business terms and alternative distribution. The rules remain limited to the EU, but Indian developers with European distribution will need to evaluate commission exposure, payment architecture and marketplace eligibility before the October implementation date.
