Apple Replaces EU App Store Per-Install Fee With 5% Commission

Apple has announced a simplified commission structure for its App Store in the European Union, moving to resolve long-standing regulatory disputes with the European Commission. The company is abandoning its contentious per-install fee in favor of a percentage-based model to comply with the Digital Markets Act (DMA).

In a significant shift, Apple is replacing the per-install Core Technology Fee with a 5% "Core Technology Commission." This new rate applies to apps distributed via the web or through alternative marketplaces. According to Apple, this replaces the previous fee designed for developers who achieve "extraordinary scale," simplifying the cost of distributing software outside the official App Store.

For apps remaining within the App Store, Apple is adjusting its standard rates. Apps using Apple's own In-App Purchase system will see their commission drop from 30% to 26%, though developers enrolled in special initiatives, such as the Small Business Program, will continue to pay a reduced rate of 15%. Furthermore, apps that opt for alternative payment processing will now pay a 20% commission, which is further reduced to 10% for those in special programs.

The End of 'Malicious Compliance'

This overhaul follows years of legal friction between Apple and the EU over the company's "walled garden" ecosystem. While the DMA forced Apple to allow third-party app stores and payment methods, the company's initial implementation was widely criticized as "malicious compliance." The previous structure, which included the per-install fee, was seen as a deterrent to developers leaving the official store and contributed to a €500 million fine levied against the company in early 2025.

To further lower barriers to entry, Apple has loosened the eligibility requirements for entities wishing to operate alternative app marketplaces. The company will now accept proof of financial stability through public company status, venture capital funding, or verification via Dun & Bradstreet.

Industry Implications and Safety

This move represents a pragmatic concession by Apple, signaling a shift from a punitive per-install model to a traditional commission structure to avoid escalating DMA fines. The change potentially sets a precedent for how other dominant tech platforms must structure their marketplaces within the EU to satisfy antitrust regulators.

However, Apple is introducing new restrictions under the guise of child safety. Apps categorized under "Kids" are now prohibited from linking to external websites for transactions and must implement parental gates for any users under the age of 18.

What to Watch

Industry observers will now monitor whether this simplified structure actually encourages the growth of alternative marketplaces or if the remaining commissions remain too high for smaller developers. While the immediate regulatory pressure may ease, the long-term viability of a multi-store ecosystem on iOS remains unconfirmed as developers weigh the 5% external commission against the stability of the official App Store.