Apple Scraps Per-Install Fee for EU Developers in Major DMA Pivot
The tech giant replaces its controversial Core Technology Fee with a transaction-based commission model effective October 2026.
Apple is fundamentally restructuring its business terms for developers in the European Union, moving away from a per-install payment model to a transaction-based commission system. The changes, which take effect on October 1, 2026, represent a significant concession in Apple's ongoing effort to align its ecosystem with European regulatory demands.
Under the new framework, Apple is replacing the widely criticized Core Technology Fee (CTF)—a per-install charge—with a "Core Technology Commission" applied directly to transactions. For most developers using Apple's standard In-App Purchase system, the commission rate will be 26%. However, developers enrolled in the Small Business, Mini Apps, or Video Partner Programs will see a reduced rate of 15%.
Apple has also introduced tiered pricing for developers who opt for alternative payment methods. App Store apps that utilize third-party payment processing tools will be charged a 20% fee, while those in the aforementioned partner programs will pay 10%. Furthermore, apps that link users outside of the application to complete a purchase will incur a 15% fee, dropping to 10% for program members.
The DMA Pressure
This policy shift is the direct result of intense legal pressure from the European Commission and the requirements of the Digital Markets Act (DMA). The DMA was designed to curb the power of "gatekeeper" companies and prevent them from using restrictive practices to stifle competition.
Apple's previous attempt at compliance featured a €0.50 per-install fee for apps exceeding one million downloads. This specific mechanism was heavily criticized by the developer community, who argued it acted as a financial deterrent for high-volume free apps attempting to use alternative distribution channels. By shifting the cost from the installation to the transaction, Apple is moving from a model that penalized growth to one that taxes revenue.
Industry Implications
For the broader app economy, this transition makes alternative app stores more viable for developers of free, high-traffic applications that previously feared the crushing weight of per-install fees. It signals a victory for the EU's regulatory approach, forcing one of the world's most closed ecosystems to dismantle its walls.
However, the move does not represent a total liberation of the platform. Apple continues to maintain a financial stake in nearly every transaction, regardless of whether the app is distributed through the official App Store or an external source. Even apps distributed entirely outside of Apple's App Store will be required to pay a flat 5% commission.
What to Watch
As the October 2026 deadline approaches, the industry will be watching to see if these new rates satisfy the European Commission's definition of "fair and reasonable." While the removal of the CTF addresses a primary grievance, the persistence of a 5% fee for external distribution may remain a point of contention for developers seeking total independence from Apple's financial oversight.