Apple Concedes to EU Regulators: Cancels Core Technology Fee, Reduces App Store Commissions Across Europe

Apple has made a major concession to EU regulators by agreeing to comprehensive adjustments to its European App Store commercial terms, including measures such as lowering commission rates and eliminating controversial fee mechanisms, in order to resolve its long-standing competition law dispute with the EU.

Apple announced on Tuesday that it will abolish the “Core Technology Fee” previously charged to EU developers who bypass the App Store, replacing it with a new mechanism that levies a 5% commission on digital transactions generated by app distribution outside the platform. The new policy will take effect on October 1.

Apple stated in its announcement that this adjustment “resolves the company’s disagreements with the European Commission regarding commercial terms and alternative distribution channels.”

A spokesperson for the European Commission immediately responded, welcoming Apple’s move to revise its commercial terms, and described the step as a result of “close dialogue” between both parties. The Commission also stated it will continue to oversee Apple’s actual implementation of the new terms.

This settlement represents a significant policy retreat for Apple—earlier this year, the EU fined the company €500 million (approximately $579 million) for violating the Digital Markets Act.

One of the core aspects of this reform is Apple’s complete abandonment of the much-criticized “Core Technology Fee” mechanism.

This fee was charged based on app installation volume to EU developers who chose to distribute apps outside the App Store. Critics viewed it as an artificially imposed barrier by Apple, intended to discourage off-platform distribution.

Under the new mechanism, Apple will instead charge a 5% commission on digital transactions within off-platform apps.

Apple has also committed to expanding the range of eligible European enterprises that can distribute iPhone apps and monetize outside the App Store, and will allow developers to offer alternative payment options alongside Apple’s own payment tools.

Apple has also made concessions regarding on-platform transactions.

According to the new policy, the commission on in-app purchases in Europe will be reduced from the standard 30% to 26%; developers participating in various Apple partnership programs and those offering auto-renewing subscription services will be charged a 15% commission.

This rate adjustment applies to all developers distributing apps in the EU. Apple says the move will “reduce complexity” by bringing all parties under one unified set of commercial terms.

This settlement marks the latest significant development in a series of disputes between Apple and the European Commission under the Digital Markets Act (DMA). This regulation took full effect more than two years ago, demanding that tech giants like Apple open their platform ecosystems to third parties.

In 2025, the European Commission fined Apple €500 million for failing to allow developers to provide external purchase links within the App Store. In July of this year, Apple’s attempt to overturn this penalty in court also failed.

The European Commission’s latest investigation concerns a separate process—launched in 2024—to scrutinize whether Apple’s changes to comply with DMA requirements are genuinely in line with regulations.

For years, app developers have continuously accused Apple and Google of monopolizing smartphone app distribution channels, exercising control over digital platforms through high fees and closed payment systems. Apple’s defense of its current system is clearly financially motivated—the App Store itself is significantly more profitable compared to off-platform distribution.

Regulatory pressure from the EU has already prompted a degree of openness within the Apple ecosystem.

Under the Digital Markets Act, Apple is now required to allow third-party app stores to operate on devices in the EU, and several independent platforms have already launched in this market, including an app store backed by Epic Games, developed by the company behind the popular game Fortnite.

Apple has also announced the introduction of new child safety measures, now requiring parental authorization for users under 18 to use alternative payment channels or web transaction links.

The European Commission has stated it will closely monitor the actual implementation of these new terms, indicating that regulatory scrutiny is far from over.