EU regulatory pressure yields results: Apple (AAPL.US) significantly adjusts European App Store fee policy—eliminates per-installation charges, charges only 5% commission for off-platform distribution

According to Zhitong Finance APP, Apple (AAPL.US) has agreed to implement a series of major adjustments to the App Store in Europe, including removing the fee charged to developers for installs through non-official iPhone app marketplaces, in an effort to resolve competition disputes with the European Union.

In a statement released on Tuesday, Apple said it would replace the previous “core technology fee”—which targeted EU developers bypassing the App Store—with a new fee model. Under the new model, Apple will take a 5% commission on digital transactions generated by apps distributed outside its platform.

This adjustment is seen as a significant concession by Apple to EU regulators. For years, the two sides have engaged in a protracted struggle over the highly controlled nature of the App Store. Developers have long complained that Apple and Google (GOOGL.US) have absolute dominance over the smartphone ecosystem, charging high fees and tightly controlling their platforms’ payment systems.

The European Commission, the EU’s executive arm, has committed to shaping its image as a “regulatory police” for global tech giants, resulting in ongoing conflicts with Apple. In July of this year, the world’s second-most valuable company attempted to overturn EU restrictions based on the Digital Markets Act but was defeated in court.

Apple stated in the announcement: “These adjustments resolve our disagreements with the European Commission over commercial terms and alternative distribution methods. Meanwhile, the new rules unify all app developers distributing in the EU under a single set of commercial terms, reducing operational complexity.”

Apple also promised to increase the number of European businesses qualified to distribute and monetize iPhone apps in Europe. The new pricing and policies will officially take effect on October 1.

A European Commission spokesperson said in an email statement that the Commission “welcomes Apple’s modification of its commercial terms following our close dialogue,” and added, “Following today’s announcement, the Commission will monitor Apple’s effective implementation of the new terms.”

In 2025, the EU fined Apple €500 million (about $579 million) for violating the Digital Markets Act, because Apple did not allow developers to provide links within its App Store to direct users to external channels for transactions.

This comprehensive App Store reform is a response to another investigation launched by the EU in 2024, which aims to examine whether Apple’s adjustments to comply with the Digital Markets Act truly meet the requirements of EU rules.

Under the new policy, Apple’s commission rate on in-app purchases in Europe will drop from the standard 30% to 26%. Developers who join Apple’s various partner programs, or offer apps with auto-renew subscriptions, will be charged a 15% fee.

Meanwhile, Apple will also allow developers to offer users alternative payment methods outside of Apple’s own payment tools.

In addition, Apple will introduce new child protection measures, including requiring parental consent for users under 18 who use any alternative payment channel or are redirected to a website to complete transactions.

A third-party app marketplace refers to a platform for app distribution that operates independently of the built-in Apple App Store. According to the Digital Markets Act, which came fully into effect more than two years ago, Apple is required to allow the existence of such third-party app marketplaces in the EU.

Previously, Apple was accused of artificially creating barriers in the EU, making it difficult for developers and consumers to distribute and obtain apps outside the App Store, leading to multiple investigations and fines. Apple is strongly economically motivated in this area, as its official App Store is far more profitable than external distribution and payment methods.

Nevertheless, several well-known third-party app stores for Apple devices have emerged in Europe, including one supported by Epic Games, the developer of the popular game Fortnite.