Apple has announced new business terms for app developers in the European Union following its long-running regulatory dispute with the European Commission over compliance with the Digital Markets Act. The changes are intended to simplify Apple’s increasingly complicated EU system while giving developers greater freedom to direct users toward alternative ways of purchasing digital goods and services. The unified terms take effect from October 1, 2026 for developers that accept the updated agreement. Instead of maintaining several different business models, Apple is moving developers distributing apps in the EU toward a single set of terms. Developers can use Apple’s In-App Purchase system, alternative payment processing within their apps where permitted, or direct users to external websites where purchases can be completed outside the App Store. This represents a significant shift from the traditional App Store model, under which Apple tightly controlled how digital purchases could be offered inside iPhone and iPad applications. The changes follow sustained regulatory pressure from Brussels. In April 2025, the European Commission concluded that Apple’s restrictions on “steering” – the ability of developers to inform users about alternative or potentially cheaper purchasing options outside the App Store – breached the Digital Markets Act and fined Apple €500 million.
Greater payment freedom does not mean that all payments to Apple disappear. For transactions resulting from offers promoted by App Store applications, the new structure can include several components depending on how an app operates and which Apple services it uses. Apple describes these through an Initial Acquisition Fee, a Store Services Fee and, for certain apps using external purchase links, a Core Technology Commission. The exact effective rate therefore depends on the developer’s business model and services used, meaning there is no single percentage that accurately describes the cost for every app. Another significant change concerns Apple’s existing Core Technology Fee. Under the previous alternative EU terms, qualifying developers could face a €0.50 fee for each first annual install above one million. Apple says that developers adopting the latest Developer Program License Agreement will no longer operate under that old CTF model from October 1, 2026, with the new unified terms taking its place. For consumers, the most visible effect may be that apps can more openly present purchasing options that do not use Apple’s own payment system. A developer could, for example, advertise a subscription available on its own website and direct a user there to complete the transaction. That could increase price competition by giving developers greater control over how their digital services are sold. It does not, however, guarantee that apps or subscriptions will automatically become cheaper, because developers ultimately determine their retail prices. The new rules are the latest major change to Apple’s European App Store following implementation of the DMA. The legislation imposes additional obligations on the largest digital platforms, designated as gatekeepers, with the objective of making digital markets fairer and more contestable. For Apple, that process has already led to alternative app marketplaces in the EU, additional distribution options outside the App Store and greater freedom over payment systems. The October changes represent another major step in that transformation. Apple is not eliminating its fees altogether, but it is changing how those fees are structured while giving developers substantially greater flexibility over the sale of apps, subscriptions and other digital content.
