Apple and the EU settle long-standing dispute
From 1 October, Apple is changing the fees it charges app developers in the EU. Developers will also be given greater freedom in terms of payment methods and distribution. However, the fees remain high.
Apple is introducing a new fee model for the App Store in Europe from 1 October 2026. The iPhone manufacturer hopes this will bring an end to its long-standing dispute with the European Commission over competition rules and the Digital Markets Act (DMA).
This move was prompted by complaints from developers and, in particular, music streaming suppliers. They accused Apple of blocking alternative payment methods and preventing users from switching. The European Commission imposed a fine of 500 million euros in 2024 and threatened further penalties should Apple fail to adjust its practices.
Apple is now switching all developers who distribute apps in the EU to a standardised fee structure:
- Apple will in future charge a 26 per cent commission on in-app purchases.
- In many cases, the rate drops to 15 per cent. This applies, for example, to apps in the «Small Business Programme» with low annual turnover and to automatically renewing plans after the first year.
- If developers use their own payment providers within the app, the commission is 20 per cent; with programme discounts, it is 10 per cent.
- For apps that redirect users to an external website via a link to make a purchase, Apple charges 15 per cent; with discounts, it is 10 per cent.
At the same time, Apple is introducing a new «Core Technology Commission» of 5 per cent on digital revenue generated via alternative app marketplaces or direct web distribution. The controversial «Core Technology Fee» – an installation fee for rapidly growing apps – has been scrapped. Whilst this means that some fees will be reduced overall, Apple continues to secure a share of transactions processed externally.
More freedom than in the USA
In terms of content, Apple is opening up app distribution in the EU significantly more than in other regions. Developers are permitted to offer Apple in-app purchases and alternative payment methods side by side, and to distribute their apps via alternative app stores or directly from their own website. This is subject to verification through Apple’s notarisation and security process. The choice of payment model must remain consistent for at least twelve months in each case in order to provide, from Apple’s perspective «, clarity for users».
These freedoms are greater than in the domestic US market. There, alternative app stores are not permitted and Apple attempts to restrict web payment links in iOS apps as much as possible. Apple has, admittedly, introduced a 15 per cent commission model in the USA for purchases triggered by such links. However, the fundamental requirement to obtain iPhone apps via the App Store remains in place. There is as yet no equivalent to the European Core Technology Commission for web or marketplace distribution in the USA.
For the time being, little will change for users and developers in Switzerland. The regulations outlined explicitly apply to apps distributed via EU storefronts. Web distribution is also only available within the EU. Switzerland is not covered by the European DMA and is not listed as an affected region in Apple’s press release is not listed as an affected region.
From the EU’s perspective, this move represents a success for the regulation, which aims to force «gatekeepers» such as Apple to be more open. The compromise also sends a strong signal. It offers hope that the Californian firm and the EU will also reach agreement on other points of contention. For example, regarding the new Siri AI, which will not be available in the EU at the time of its launch in September – according to Apple, due to regulatory uncertainties.
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