Technology
Danish Kapoor
Danish Kapoor

European Union is pleased with Apple’s change in App Store commissions

Apple has revised its fee structure for developers who distribute applications outside the App Store in the European Union to comply with the Digital Markets Act (DMA). While the company is reducing the fee, called Core Technology Fee, it is moving to a simpler pricing system for applications distributed through alternative application stores and the web. Apple stated that the changes were prepared as a result of close discussions with the European Commission and aimed to resolve disputes with the Commission regarding alternative distribution and commercial conditions. The European Commission also announced that it welcomed the new conditions. However, Epic Games, which has been waging a legal battle with Apple for a long time, is of the opinion that the new fees are not in line with the purposes of the DMA.

The European Commission stated that the regulations announced by Apple emerged as a result of the discussions held following the non-compliance decision taken in April 2025 and preliminary findings regarding alternative application distribution. According to the Commission’s statement, Apple’s rules regarding directing developers to purchasing options other than the App Store were previously examined within the scope of the DMA. Although the new regulation is welcomed by the Commission, the audit process does not end. The EU administration particularly emphasizes that it will continue to monitor how Apple implements the conditions it announced in practice. The Commission recalls that users in the European Union must be able to fully and effectively choose between alternative application distribution channels under the DMA.

How will Apple’s new App Store fees in the EU apply?

Apple’s new system, which will come into effect on October 1, changes the fees paid by developers, especially those who distribute outside the App Store. While the Core Technology Fee, which was previously used for applications reaching iPhone and iPad users through alternative application stores or the web, is being reduced, the fee structure is also being rearranged. On the other hand, a distribution model completely independent of Apple’s system has not emerged. According to the figures provided by Epic Games, Apple can charge up to 20 percent for alternative in-app payment methods and up to 15 percent for links to external purchasing pages from the application. A 5 percent Core Technology Commission is expected to be charged for digital purchases made from alternative stores or applications downloaded from the web.

These conditions have direct financial consequences for Epic Games Store. Epic Games will have to pay a 5 percent Core Technology Commission on digital purchases made in applications distributed through its store for iPhone and iPad in the European Union. If an application is distributed through the App Store and an external purchasing option is offered to the user via a link, the fee may increase to 15 percent. Apple also applies lower rates for developers within the scope of the Small Business Program, Video Partner Program and Mini Apps Partner Program. Small alternative app stores are also exempt from paying Core Technology Commission under certain conditions. Epic Games is not among the companies that can benefit from these discounts due to its size and current activities.

Epic Games describes Apple’s new model as “junk fees” and argues that the regulation does not create the competitive environment envisaged by the DMA in the mobile application ecosystem. At the heart of the company’s objection is that developers continue to have to pay Apple if they direct users to purchasing options on the web. According to Epic, the DMA requires that developers be freely allowed to provide web links for purchases and that competing app stores can be effectively used. For this reason, the company argues that if the European Commission accepts Apple’s conditions and ends the ongoing enforcement processes, the law will not yield the intended results for developers and consumers. Epic’s approach is based on the view that Apple reducing fees alone is not enough and that alternative distribution must also be economically viable.

The dispute between Apple and the European Commission has its history in the DMA’s effects on the App Store. The European Commission concluded that Apple’s rules restricting developers from directing users to alternative purchasing channels were contrary to the DMA and increased the pressure on the company. Apple, on the other hand, has changed the App Store conditions in Europe several times in recent years; Alternative app stores, web app distribution and third-party payment methods were added to the iOS and iPadOS ecosystem within the scope of these regulations. However, the cost of the system for developers continued to be discussed, as each change brought with it new fee models and eligibility conditions. Epic Games’ latest statement also shows that the discussion is now focused not only on whether alternative distribution is technically possible, but also on the extent to which these methods are commercially available for developers.

The European Commission’s positive response to the new conditions may ease the current dispute for Apple, but the Commission’s statement that it will continue to monitor the application does not mean that the process is completely closed. In particular, how the 5 percent Core Technology Commission and the fees applied to external purchasing links comply with the DMA’s “effective selection” condition may be re-evaluated in the future. For Apple, the new system reduces costs for some developers compared to the previous model, while providing additional advantages to small businesses and companies participating in certain programs. Despite this, it seems that going outside the App Store has not become a completely free option for major developers such as Epic Games. The evaluations to be made by the European Commission after the conditions will be implemented on October 1 will more clearly reveal whether Apple’s current fee model will be permanent in the EU.

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Danish Kapoor