Apple agrees to App Store changes in Europe to resolve EU dispute

Apple has agreed to overhaul its App Store fee structure for European developers, scrapping the widely criticized per-install Core Technology Fee in favor of a simpler percentage-based model. The company updated its Developer Program License Agreement on August 18, 2026, with the new terms set to kick in on October 1, 2026.

The move comes after extended negotiations with the European Commission and represents Apple’s most substantive concession yet under the EU’s Digital Markets Act, the sweeping regulation that has been reshaping how the continent’s biggest tech platforms operate since 2024.

What’s actually changing

Apple is replacing the per-install Core Technology Fee with a 5% Core Technology Commission applied to revenue from digital goods and services sold outside the App Store. Developers now pay a cut of what they actually earn, rather than a fee tied to distribution volume.

Two additional charges, the Initial Acquisition Fee and the Store Services Fee, are also being eliminated under the updated terms. The result is a single, consolidated commission framework for out-of-store transactions.

For transactions that still run through the App Store itself, Apple’s existing commission rates remain in place, typically sitting around 10% for many developers under current EU rules.

Apple worked on these changes in close collaboration with the European Commission, according to the updated agreement.

Who benefits, and how the landscape shifts

One of the quieter but consequential changes is an expansion of who can operate an alternative app marketplace on iOS in Europe. Under the updated terms, publicly traded companies and those backed by venture funding now meet the eligibility threshold, opening the door to a broader range of potential App Store competitors on Apple’s own hardware.

The update also introduces new child safety requirements for apps targeting younger users. Any app in that category that offers alternative payment options must now include parental controls.

For smaller developers, the shift from per-install fees to revenue-based commissions is straightforwardly better. A startup with high download numbers but modest revenue was disproportionately burdened by the old structure. Larger developers with significant out-of-store revenue streams will need to run the numbers carefully, as a 5% commission on substantial revenue could exceed what some were paying under the previous tiered fee system. Apple did not release financial modeling or developer-specific impact analysis alongside the announcement.

The bigger regulatory picture

The law designates Apple as a so-called gatekeeper for its iOS platform and App Store, which means it faces obligations around interoperability, third-party access, and fair dealing. Apple’s initial DMA compliance proposals in early 2024 were met with skepticism from developers and regulators alike, who argued the fee structure Apple introduced at the time effectively neutralized the practical benefits of the new rules. The Core Technology Fee was the main flashpoint: critics argued it made sideloading and alternative distribution financially unattractive for any developer with meaningful scale.

Investors tracking Apple’s European revenue exposure will note that the company has not disclosed how the fee restructuring is expected to affect its services segment. The absence of guidance suggests Apple is either still modeling the impact or choosing to absorb the uncertainty without comment.

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