Apple overhauls Europe app store fees to resolve payments clash

On Tuesday, Apple unveiled a revised fee structure for apps in the European Union to mend tensions with European Commission regulators. Apple will now replace its per-install Core Technology Fee with a uniform 5% commission on digital goods sold outside the App Store or on websites. The tech giant also adjusted the rates for alternative payments and in-app purchases, simplifying the process for developers to establish alternative app stores.

These modifications come as Apple continues to align its App Store business terms with EU regulations, following a series of disputes over the complexity and fairness of its previous terms. Last year, Apple revised its App Store fees in the EU following a €500 million fine from regulators for noncompliance with the EU’s Digital Markets Act (DMA).

The new fee structure features a simpler commission model, with Apple presenting a flat 5% charge on transactions made via alternate app marketplaces or the web. In-app purchase fees will now be 26%, down from 30% under the previous terms, although most developers will still be eligible for the discounted 15% fee through special programs or for apps with auto-renewing subscriptions after their first year.

Developers utilizing alternative payment processing will face a 20% commission unless they are part of a special program, in which case the rate will decrease to 10%. Apple has also imposed a 12-month commitment for developers to choose their preferred payment method, whether it is Apple's in-app purchases, external payments, or a mix of the two.

The revised terms also include exceptions for developers permitted to use external links within their apps, with the exception of apps classified in the Kids category, which will require parental consent for purchases outside the App Store. Notably, Apple has relaxed the criteria for developers to operate alternative app stores, requiring only certain financial stability measures, such as public company status, financial audits, qualifying VC funding, or meeting previous milestones like significant financial backing or substantial app installations in the EU.