Apple unveils new App Store commission rates for developers in the EU

Apple has published updated business terms for apps distributed within the European Union. Starting October 1, the company will retire its widely criticized Core Technology Fee and replace it with a new Core Technology Commission applied to in-app purchases.

Multiple commission tiers

The new structure sets different rates depending on how a transaction is processed. Most developers using Apple's in-app purchase system for App Store apps will pay a 15 percent commission, while developers outside Apple's support programs will be charged 26 percent.

App Store apps that use alternative payment processing tools will face a 20 percent fee, and apps that direct users outside the app to complete a purchase will be charged 15 percent. Developers enrolled in Apple's partner programs using either of these two payment paths will receive a reduced 10 percent rate.

Apps distributed entirely outside the App Store will be subject to a flat 5 percent commission. Additional discounts apply to developers participating in the App Store Small Business Program, the Mini Apps Partner Program and the Video Partner Program.

Years of legal wrangling

The revised terms are the latest step in Apple's prolonged legal battle over compliance with the European Union's Digital Markets Act (DMA). The company recently lost its attempt to avoid being classified under the DMA's more strictly regulated "gatekeeper" status, and it may still face country-specific litigation over allegedly anti-competitive practices, including a recent case in Germany.

Meanwhile, there has been some momentum in the United States toward relaxing restrictions on sideloading and alternative payment systems. Apple is also seeking support from a US court to charge a commission of between 5 and 15 percent on third-party payment transactions.