Apple overhauls App Store rules in the EU in bid to end dispute with Commission

Apple is once again revising its App Store rules in the European Union, saying the update will settle its disagreements with the European Commission over business terms and alternative app distribution. Every developer distributing apps through the App Store will move to a single, unified set of business terms.

The new terms take effect on October 1st. Apps using Apple's in-app purchase system will face a 26 percent commission, while developers relying on alternative payment providers will pay 20 percent. Purchases that direct users outside the app to complete a transaction will carry a 15 percent commission. Lower rates apply to developers enrolled in the Small Business, Mini Apps Partner, or Video Partner programs.

Under the new terms, EU developers can offer both in-app purchases and alternative payment systems simultaneously, but must keep their chosen payment setup unchanged for 12 months to maintain consistency for users.

Digital transactions within apps distributed through third-party app stores or the web will be subject to a 5 percent Core Technology Commission. At the same time, Apple is dropping its initial acquisition fee, store services fee, and the previous Core Technology Fee, which charged €0.50 per install once an app passed one million annual downloads.

Web-based app distribution remains available only in the EU, and Apple has set eligibility requirements for companies wanting to run a third-party app marketplace over the web — such as being publicly traded or having undergone a financial audit by a licensed accountant.

Apple already adjusted its App Store rules last year to comply with the EU's Digital Markets Act (DMA) but has continued to criticize the regulation. The company was fined last year after the European Commission found its App Store anti-steering practices violated the DMA, and it lost a bid last month to have the App Store and iOS excluded from the DMA's scope.

The update also introduces new child-safety measures for the EU. Kids' apps can no longer include links to outside websites for completing purchases, and apps cannot direct users under 13 to external sites to buy something. Users under 18 will need parental or guardian approval to make purchases through an alternative payment method inside an App Store app.