In a move aimed at aligning with European Union mandates, Apple has announced a significant revision of its app distribution and fee structures for the region. The update comes after consultations with the European Commission and is designed to give developers more flexibility in how they distribute and monetize their apps within the EU.
Effective from October 1, the new terms introduce a simplified fee structure and broaden the criteria for app marketplace operators seeking to operate outside of Apple's traditional ecosystem. Key to these changes is the abolition of the older Core Technology Fee, replaced instead by a 5% Core Technology Contribution (CTC) applicable to transactions outside the App Store.
Apple's new fee landscape now accommodates various payment methods, with different rates set depending on how payments are processed. For in-app purchases processed through Apple’s own payment system, commissions will be 26%, which is reduced to 15% for Small Business Program members. When consumers pay via external payment options, the commission drops to 20%, and further to 10% for small business participants. Payments initiated through external links will incur a 15% fee, reduced to 10% under similar conditions.
Additionally, apps distributed via alternative marketplaces or directly from the web will be subject to the new 5% CTC, marking a significant shift that relaxes the previous restrictions.
A notable policy change allows developers to offer both in-app and external payment options within their apps. Nonetheless, the terms specify that once a payment method is selected—whether in-app, external, or via external link—it must remain unchanged for a minimum of 12 months. This regulation aims to stabilize user experience and prevent sudden payment method switches.
Enhanced child protection measures have been incorporated into the platform’s guidelines. Purchases through alternative payment systems now require parental verification, and linking to external websites for purchases involving children under 13 is prohibited. For children and teenagers aged 13 to 17, similar parental verifications are mandated, aligning with broader legal standards.
The criteria for developers engaging in external app stores or web distribution have been greatly expanded. Developers must now demonstrate various indicators of viability such as financial stability, public trading status, investment backing, or an approved financial audit. Alternatively, eligibility can be established by providing a standby credit letter of $1 million or achieving a minimum of 1 million first-year installs globally. These criteria are broader than the previous requirement of establishing a legal entity within the EU.
Small developers with global revenues below €10 million and less than €1 million in the past year may qualify for an exemption from the 5% CTC fee, easing participation from smaller players.
Apple has also announced plans to enable EU users traveling outside the region to continue installing apps from external sources for up to 90 days, reflecting ongoing efforts to accommodate user mobility.
The overhaul underscores Apple’s attempt to adapt to new regulatory environments while maintaining a balance between control and flexibility for developers. As this new framework unfolds, the app ecosystem in Europe is expected to evolve, with developers adjusting operational strategies to meet the revised requirements and capitalize on new distribution channels.
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