Apple EU App Store Fees Overhauled

Apple Inc. (AAPL) revised its EU App Store fees by publishing updated business terms on Aug. 18, 2026. The company replaced the per-install Core Technology Fee with a new Core Technology Commission, effective Oct. 1, 2026. Apple’s latest Form 10-Q warns that this change could reduce commissions in its Services segment.

New EU Terms and Fees

Apple replaced the per-install Core Technology Fee with a 5% Core Technology Commission on digital transactions for apps distributed outside the App Store, including alternative marketplaces and direct web distribution. The company eliminated the Initial Acquisition Fee and Store Services Fee that previously applied to alternatively distributed apps.

From Oct. 1, 2026, all developers distributing iOS and iPadOS apps in the EU will operate under a single set of business terms aligned with the Digital Markets Act (DMA). Developers must select their payment and distribution options—such as Apple In-App Purchase, alternative payments, link-out purchases, or alternative marketplaces—and maintain those choices for 12 months before changing them.

Apple will continue requiring Notarization, a baseline security and functionality review, for apps distributed outside the App Store.

The new terms allow apps to offer alternative payment options alongside Apple In-App Purchase, subject to presentation and user-experience standards. Apple added child-safety protections and limits on alternative payments for apps aimed at children.

Eligibility criteria for operators of alternative app marketplaces have been relaxed. The previous €1 million standby-letter requirement was replaced with standards based on moderate financial stability (such as a Dun & Bradstreet metric), public-company ownership or audited financials, venture backing from established firms, and specific categories for government, educational, and nonprofit operators.

Apple published a consolidated commission schedule for EU apps: a standard 26% rate on Apple In-App Purchases, reduced to 15% for qualifying small-business and partner programs and certain subscription renewals. Embedded alternative payment processors will incur a 20% commission, reducible to 10% for qualifying developers. Link-out website purchases carry a 15% rate, also reducible to 10% for qualifying developers.

Regulatory and Investor Implications

Apple described the changes as developed “in close collaboration with the European Commission” to reduce complexity and resolve disagreements over business terms and alternative distribution.

The European Commission welcomed the revisions and said it will monitor implementation rather than immediately imposing periodic DMA penalty payments. The Commission had fined Apple €500 million in April 2025 for steering restrictions and warned that penalties could exceed €50 million per day for noncompliance. Apple has appealed that fine.

In its most recent Form 10-Q, Apple warned that if developers use alternative distribution or payment methods, the company “may receive a reduced commission” or “may not receive any commission at all.” The filing presents this as a material risk to App Store commissions and the Services segment, reported as an approximately $100 billion annualized business.

The new terms aim to reduce immediate DMA enforcement pressure. However, the investor impact will depend on how many developers adopt alternative payments and marketplaces and how much commission Apple ultimately retains, a dynamic the company highlights in its regulatory filing.