Apple changes fees for alternative app stores in EU

Apple is simplifying how it charges developers who distribute apps outside its own App Store in the European Union. Announced on June 26, 2025, the overhaul consolidates a previously layered fee system into a single 5% Core Technology Commission on digital goods and services sold through alternative marketplaces and web distribution channels.

The new structure takes effect January 1, 2026, replacing the per-install Core Technology Fee that Apple had introduced when the EU’s Digital Markets Act first forced the company to open its ecosystem to competing app stores.

What actually changed

The old fee model worked like this: developers distributing through alternative channels paid a per-install charge on top of other commissions, creating a stack of costs that was difficult to predict and, in some cases, financially punishing for apps with large free user bases.

Under the revised framework, Apple charges a flat 5% on paid apps and digital goods or services sold outside the App Store. The layered fees that had drawn complaints from developers and regulators alike are gone.

Apple has said that under the previous per-install model, most developers were effectively paying less than 1% in total fees. The company’s Developer Program License Agreement was formally updated on August 18, 2026, to lock in the unified structure.

The regulatory backdrop

Apple did not make these changes voluntarily, at least not in any conventional sense of the word. The EU’s Digital Markets Act designates certain large platforms as “gatekeepers” and imposes obligations on how they treat competing services, developers, and distribution channels. Apple was designated as a gatekeeper for its iOS operating system and App Store.

Non-compliance carries real consequences. EU regulators had flagged potential fines, with a stated penalty of €500 million cited in connection with Apple’s DMA obligations. For a company with Apple’s balance sheet, that specific number is not catastrophic on its own, but repeated violations carry escalating fines that can reach up to 10% of global annual turnover, and 20% for repeat offenders.

The original alternative distribution framework Apple introduced after the DMA took effect was widely criticized as a “malicious compliance” maneuver. Developers and digital rights groups argued that the per-install fee effectively made alternative app stores uneconomical, preserving Apple’s App Store dominance in practice even as the company technically complied with the law on paper. The European Commission appeared to agree with that read, which is what pushed Apple toward this revised structure.

What this means for developers and the market

For smaller developers considering alternative distribution in the EU, the new model lowers the barrier meaningfully. A free app with millions of installs but modest in-app revenue could have faced substantial charges under the old structure. Under 5% of actual sales, the math is more manageable.

That said, 5% on top of whatever a marketplace operator charges is still a cost that did not exist before the DMA forced Apple’s hand. Third-party marketplace operators set their own rates, so a developer distributing through an alternative EU app store could end up paying the store’s commission plus Apple’s 5% CTC.

For Apple itself, the revenue implications cut in multiple directions. The company earns roughly 15% to 30% on App Store transactions depending on developer size and app category. A developer who shifts to an alternative marketplace and pays 5% to Apple plus a lower marketplace fee could end up costing Apple revenue per transaction.

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