Apple’s EU App Rules: The New 5% Commission Explained

Apple is rewriting the business rules for apps in the European Union.
From October 1, 2026, developers will move onto one set of EU terms
covering App Store distribution, outside payments, alternative
marketplaces and direct web downloads.

The headline change is a new 5% Core Technology
Commission on covered digital transactions in apps distributed
outside the App Store. It replaces the Core Technology Fee, which was
based on app installations for qualifying high-scale developers.

The effect depends on where an app is obtained and how a purchase is
made. It does not mean app or subscription prices will automatically
fall.

Apple’s unified EU app terms from October 1, 2026

Apple
announced the changes on August 18 following discussions with the
European Commission. The updated agreement takes effect on October 1, or
on the date a developer accepts it if that happens later.

Apple says the unified model removes the separately named
Initial Acquisition Fee and Store Services
Fee, while replacing the installation-based Core Technology
Fee. This does not make outside commerce free: the new commissions
depend heavily on the app’s distribution route.

How the 5% Core
Technology Commission works

The 5% commission applies to alternative app marketplaces, apps
downloaded through those marketplaces and iPhone or iPad apps
distributed directly from an authorised developer’s website in the
EU.

According to Apple’s
detailed developer guidance, it covers paid apps and sales of
digital goods or services—including one-off purchases and auto-renewing
subscriptions—that are usable within an app on an Apple platform. It can
also cover a web purchase promoted through an actionable link from an
alternatively distributed app when the sale occurs within seven days of
the tap.

This differs from the outgoing Core Technology Fee, which could
create a cost based on annual installation volume even when revenue per
user was low. Under the new structure, the amount owed grows with
covered digital sales instead.

More payment
choice—within a new rate structure

An EU App Store app will be able to display Apple In-App Purchase
alongside another payment option. A developer can use a third-party
processor inside the app, send the user to a website or another approved
destination, retain Apple’s system, or offer a combination.

The standard rates are 26% when Apple processes an App Store
purchase, 20% for alternative in-app processing, and 15% for covered
sales reached through an actionable external link. Reduced rates of 15%
or 10% apply to eligible program transactions and qualifying
subscriptions after their first year.

Using a non-Apple processor therefore does not necessarily remove
Apple’s commission. Developers may also take on processing charges, tax
collection, refunds, fraud management and subscription support.

Apple’s revised
Developer Program License Agreement also imposes a 12-month
commitment. After selecting Apple In-App Purchase, alternative in-app
processing, actionable external offers or a combination, a developer
must maintain that election across EU storefronts for a year. This is a
developer business choice, not a requirement that an individual customer
keep using one payment method for 12 months.

Who can
operate a marketplace or use Web Distribution?

Apple is widening eligibility and no longer requires a company to be
established in the EU or have an EU legal entity. That creates a
possible route for companies based elsewhere—including Australia—to
serve EU customers.

An organisation must still enrol in the Apple Developer Program and
satisfy at least one test. Options include a specified Dun &
Bradstreet rating, public-company status, a qualifying letter of credit
or recent audit, sufficient scale and program history, established
venture backing, or eligible government, education or nonprofit
status.

Alternatively distributed apps must still pass Apple’s Notarization
process, a baseline review of security, privacy, functionality and
serious fraud. Marketplace operators also assume responsibility for
support, content policies, data handling and harmful apps.

Will apps become cheaper?

Possibly in some cases, but not automatically.

Lower or more predictable costs could give some developers room to
offer discounts, and more choices may increase competitive pressure.

However, developers set prices and may keep savings or face new
processing, tax, support and marketplace costs. The 5% commission is a
continuing cost, not a zero-fee route. Users should compare the total
price, renewal terms and refund process.

What this means for
users in Australia

For an Australian iPhone or iPad user at home, the immediate answer
is: no direct change. These terms apply to EU
storefronts and EU alternative distribution.

Apple’s consumer
support page says EU alternative distribution requires both an Apple
Account set to an EU country or region and physical presence in the EU.
An Australian account holder does not become eligible merely by visiting
Europe, and the October 1 announcement does not introduce third-party
iOS marketplaces or Web Distribution in Australia.

Australian developers are different. Because an EU establishment is
no longer mandatory, an eligible Australian company could operate a
marketplace or distribute apps on the web for EU users,
subject to Apple’s terms and European law.

Australia’s process is separate. In April 2026, the Australian
Competition and Consumer Commission said the Federal Court had found
Apple misused market power by restricting alternative distribution and
payments, with relief proceedings continuing. Any local change would
come from that process, legislation or a separate Apple decision—not
automatically from the EU package.

Independent digital app marketplaces connected across a stylised map of Europe within a transparent regulatory framework — Europe’s emerging app ecosystem combines competing marketplaces with security review and regulatory oversight.

The wider regulatory picture

The EU’s Digital Markets Act requires designated gatekeepers to allow
third-party app distribution and steering to other purchase channels.
The Commission’s
DMA explainer says gatekeepers cannot require developers to use
their in-app purchase systems.

The Commission found Apple’s earlier steering rules non-compliant in
April 2025. Reuters
reported that the Commission welcomed the August 2026 changes but
would monitor their application, while critics including Epic Games
continued to argue that Apple’s charges remained too restrictive.

The October framework is a significant reset, not the end of the
argument. EU users may see more ways to download and pay, while
developers receive a simpler—but still controlled and
commission-bearing—set of choices.

Reporting note

This article reflects Apple’s terms and public guidance available on
August 29, 2026. The new framework is scheduled to apply from October 1,
2026, or from a developer’s later acceptance date. Actual developer
adoption, enforcement and any further regulatory response remain to be
seen.

For broader context on the two mobile ecosystems, read our Android vs iPhone platform comparison.

Sources and further reading

FutureTechDose covers biotechnology, AI, data-centre and
energy-sector research and industry progress for a general audience.
This article is informational and does not provide medical or investment
advice.

A Star Racing Around Our Black Hole Could Reveal How Space Twists

Microsoft’s Glass Archive Takes Aim at a 10,000-Year Memory

The Next Battery Leap May Be Hiding in the Liquid Inside

Apple’s EU App Rules Are Changing Again: What the New 5% Commission Really Means

Apple’s unified EU app terms from October 1, 2026

How the 5% Core Technology Commission works

More payment choice—within a new rate structure

Who can operate a marketplace or use Web Distribution?

Will apps become cheaper?

What this means for users in Australia