Apple (NASDAQ: AAPL) has announced sweeping changes to its App Store business terms for European Union developers, cutting its standard in-app purchase commission from 30% to 26%.
The move follows what Apple described as “close collaboration” with the European Commission, resolving a prolonged dispute over business terms and alternative app distribution.
Developers enrolled in the App Store Small Business Program, the Mini Apps Partner Program, and the Video Partner Program will pay a reduced commission of 15%, down from a previous standard rate.
Apple is also replacing its controversial Core Technology Fee with a simpler Core Technology Commission, set at a flat 5% on digital transactions in apps distributed outside the App Store.
The outgoing fee structure charged developers 0.50 euros per install once an app surpassed one million downloads in the EU within a twelve-month period, even when those installs generated no revenue.
That per-install charge had become one of the most contested elements of Apple’s earlier compliance plan and drew sustained criticism from developers and regulators alike.
Under the new framework, App Store apps using alternative payment processing will face a 20% commission, or 10% for developers in qualifying programs, while apps linking out to complete purchases will be charged 15%, or 10% for program participants.
Apps distributed through alternative marketplaces or directly via the web will be subject only to the 5% Core Technology Commission, significantly lowering the cost of operating outside Apple’s own storefront.
Apple clarified that the new commission structure applies exclusively within the EU and will not affect rates in any other region, with developers able to sign the updated terms immediately ahead of an October 1 implementation date.
Despite the regulatory significance of the agreement, the financial impact on Apple may be more modest than the headlines imply, given that the EU represents a fraction of the company’s overall App Store revenue.
Apple’s then-chief financial officer Luca Maestri stated on a 2024 earnings call that the EU market “represents roughly 7% of our global app store revenue,” placing an upper bound on the direct revenue exposure from these changes.
Apple’s services segment, which encompasses the App Store alongside iCloud, Apple TV, and other offerings, generated a record $30.7 billion in revenue during the fiscal third quarter of 2026, representing 12% year-over-year growth.
That segment is now running at an annual pace above $120 billion, meaning even the slower growth rate from the prior quarter’s 16% pace adds more than $13 billion in new services revenue annually.
Apple had previously updated European App Store rules in June 2025, but those changes were criticized for excessive complexity and failed to fully resolve the Commission’s concerns, making this latest settlement a more comprehensive resolution.
