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Apple overhauls EU App Store fees, simplifies alternative marketplace rules

Apple has announced a simplified commission structure for apps in the European Union, replacing its per-install fee with a 5% commission for apps distributed outside the App Store.

  • Apple will replace its per-install Core Technology Fee with a 5% commission for apps distributed outside the App Store or on the web in the EU.
  • In-app purchase fees are set at 26%, down from 30%, with many developers still qualifying for a 15% discounted fee.
  • Requirements for developers to operate an alternative app store have been loosened, allowing marketplaces that meet financial stability criteria.

Apple announced on Tuesday a revised commission structure for apps within the European Union, aiming to resolve ongoing disagreements with the European Commission regarding its business terms. The new model introduces a flat 5% commission for apps distributed outside the App Store or on the web, replacing the previous per-install Core Technology Fee.

The changes also include adjustments to in-app purchase fees, which are now set at 26%, a reduction from the traditional 30%. Many developers will continue to benefit from a discounted 15% fee through specific programs, such as the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program, as well as for auto-renewing subscriptions after their first year.

For apps utilising alternative payment processing, a 20% commission will apply, dropping to 10% for those in special programs. Developers will be required to commit to their chosen payment options for 12 months. Additionally, Apple has eased the requirements for developers seeking to operate alternative app stores, now permitting marketplaces that meet certain financial stability bars, and has removed the previous requirement for developers to be large iOS developers.

Why this matters: The changes represent Apple's latest effort to align its App Store business terms with EU regulations, following previous fines for non-compliance with the Digital Markets Act.

What this means for you: Users under 18 years old will need parental approval before making purchases outside the App Store.

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