Apple shifts from installation fee to commission model for EU app sales
Apple is updating its fee structure for app developers in the European Union. Beginning October 1, 2026, the company replaces the per-installation Core Technology Fee with a 5% commission on all digital sales, including apps distributed through alternative stores or direct websites.
New commission replaces installation fee
Previously, large apps paid a fixed 0.50 euro per first annual installation above one million. This rule faced criticism because free app developers could incur high costs without generating revenue from the app itself. Under the new model, such apps are exempt from fees.
Apple introduces the Core Technology Commission: a 5% cut from revenue generated by paid apps, digital goods, and subscriptions, regardless of whether they are sold via an alternative marketplace or directly on a developer’s website. For apps within the official App Store using In-App Purchase, the commission will be up to 26%, dropping to 15% for certain program participants after their first year.
Conditions for alternative stores and websites
Apple eliminates the Initial Acquisition Fee and Store Services Fee. Developers can now offer Apple’s payment system alongside alternative payment methods, provided the chosen combination remains unchanged for 12 months.
Requirements for alternative app marketplaces and direct website sales are relaxed: operators no longer need to maintain a physical presence in the EU to comply with Apple’s terms.
Regulator response
The changes respond to the Digital Markets Act. In April 2025, the European Commission fined Apple 500 million euros for improper restrictions on app developers. Apple appealed the fine, and the new agreement was reached in close cooperation with the regulator. The Commission welcomes the reform but will continue monitoring its implementation.
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