Key Takeaways
- Apple’s dispute with the European Commission over App Store pricing has been settled with revised fee structures launching October 1.
- The per-install Core Technology Fee is eliminated, replaced by a 5% Core Technology Commission applied to digital sales occurring outside Apple’s App Store.
- In-app purchase commissions through the App Store decline from 30% to 26%, while smaller developers qualifying for special programs pay 15%.
- Apps utilizing alternative payment methods face a 20% commission, whereas apps directing users to external websites for purchases incur a 15% fee.
- Epic Games contends Apple’s 15% external link commission remains excessive and intends to challenge the proposal within the 60-day filing period.
Apple has concluded its extended conflict with the European Commission regarding App Store commission structures, unveiling a revised framework that becomes effective throughout the European Union starting October 1.
The most significant modification involves eliminating the Core Technology Fee, which previously imposed per-installation charges on developers exceeding one million downloads within any 12-month period. This charge has been supplanted by the Core Technology Commission, a straightforward 5% levy on digital sales conducted through apps distributed via channels outside Apple’s official App Store.
Additionally, the initial acquisition charge and store services fee have been eliminated entirely under this restructured system.
For developers conducting sales through the App Store utilizing Apple’s proprietary in-app purchase infrastructure, the commission percentage decreases from 30% to 26%. While this represents a relatively modest reduction, it applies universally to standard applications.
Developers participating in Apple’s Small Business Program, Mini Apps Partner Program, or Video Partner Program receive more favorable terms. These developers will pay just 15% on in-app purchase transactions. This identical 15% rate also extends to auto-renewing subscriptions following their initial year.
Applications employing third-party payment processing systems within the App Store environment will encounter a 20% commission. Developers qualifying for the aforementioned programs pay a reduced 10% rate.
External Purchase Links Get New Commission Structure
For applications that redirect users to external websites to finalize transactions, Apple has established the commission at 15%. Smaller developers enrolled in eligible programs pay 10%.
Applications distributed through third-party app marketplaces or directly via web platforms will exclusively pay the 5% Core Technology Commission. No additional charges apply under this distribution method.
Apple is additionally introducing a capability that was previously prohibited within the EU: developers may now provide Apple In-App Purchase alongside third-party payment alternatives within the same application. The previous policy required selecting one payment method exclusively.
However, restrictions apply. Developers must select their payment configuration and maintain it for a minimum 12-month period. Apple justifies this requirement as necessary for delivering a consistent user experience.
Enhanced Child Protection Policies Introduced
Apple has implemented additional child safety regulations connected to the modified payment structures. Applications categorized under the Kids section will be prohibited from directing users to external websites for purchasing. For users below 18 years of age, applications utilizing alternative payment systems or external purchase links must incorporate a parental gate feature. For users under 13 years old, external website links for transactions are completely prohibited.
Apple is simultaneously expanding eligibility criteria for entities permitted to operate alternative app marketplaces within the EU. Updated qualification standards include being a publicly traded company, receiving backing from recognized venture capital firms, having undergone financial audits, or operating as a government or nonprofit organization.
Notwithstanding the European Commission settlement, Epic Games remains dissatisfied. Apple submitted a comparable proposal to the U.S. District Court for the Northern District of California the previous week as part of its continuing six-year legal confrontation with the Fortnite developer.
Epic contends that Apple’s proposed 15% external link commission in the United States exceeds the boundaries established by the Ninth Circuit, and has approximately 60 days to submit its formal opposition supported by expert testimony. Epic advocates for eliminating all commissions on external link purchases for American users.
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