Apple Eliminates Core Technology Fee: Switches to 5% Commission for EU App Business
Apple replaces EU per-install Core Technology Fee with a 5% transaction commission, effective October 2026.
Apple announced a comprehensive overhaul of its EU App business terms, effective October 1, 2026. The centerpiece is replacing the widely criticized Core Technology Fee (CTF) — which charged per install — with a 5% Core Technology Commission (CTC) on digital transactions through alternative channels, tying costs to actual developer revenue. The Initial Acquisition Fee and Store Services Fee are also eliminated. New terms allow alternative payment options alongside Apple IAP, expand eligibility for alternative app marketplaces, and add child safety protections. Apple noted the changes were made in close collaboration with the European Commission, signaling a substantive step toward genuine ecosystem openness under DMA pressure.
Following close collaboration with the European Commission, Apple has announced significant changes to its App business terms for the EU region. One of the core goals of this update is simplification — all developers distributing apps in the EU will move to a unified set of business terms. These changes will take effect on October 1, 2026, marking another important concession and adjustment from Apple under the regulatory pressure of the Digital Markets Act (DMA).
From "Core Technology Fee" to "Core Technology Commission": A Fundamental Shift in Pricing Logic
The most closely watched change in this update is Apple's handling of the widely criticized Core Technology Fee (CTF). Previously, the CTF was a "per-install" charging mechanism primarily targeting developers who reached massive scale, requiring a fixed fee for each installation. This model drew heavy criticism for the potentially crushing burden it placed on independent developers and fast-growing apps.
Under the new terms, the Core Technology Fee will be replaced by the Core Technology Commission (CTC). The new CTC mechanism is more straightforward: for apps distributed outside the App Store, Apple will charge a 5% commission on digital transactions. This shift from "per-install billing" to "per-transaction commission" fundamentally ties costs to developers' actual revenue — a far more developer-friendly model for apps that have yet to generate significant income.
In addition, Apple announced it will eliminate the Initial Acquisition Fee and the Store Services Fee. Both fees were introduced as part of Apple's "alternative distribution" model in the EU and have now been removed entirely, further simplifying the overall fee structure.
The Core Technology Fee (CTF) was originally introduced in early 2024 alongside Apple's DMA compliance plan, charging €0.50 per first install — and re-charging upon reinstallation after deletion. The design caused an uproar. Mozilla, for example, publicly calculated that distributing a free version of Firefox in the EU could result in a net loss from install volume alone. Critics widely viewed the CTF as Apple "performing openness" for regulators while using financial pressure to deter developers from truly leaving the App Store ecosystem. The European Commission subsequently launched an investigation, which directly led to the fundamental shift from install-based billing to transaction-based commissions seen in this update.
A Comprehensive Overhaul: Fees, Payments, and Distribution
This update is not simply a fee swap — it's a systematic restructuring of the entire commission framework. According to the key changes Apple has outlined, the new terms will be overhauled across several dimensions:
Across-the-Board Commission Rate Adjustments
Apple says it will "adjust commission rates for App Store, alternative payment, and alternative distribution apps." This means the rate structure will change regardless of whether developers use the official App Store, third-party payment methods, or distribute entirely through alternative app marketplaces. This tiered design reflects Apple's attempt to find a new balance between compliance requirements and commercial interests.
Alternative Payment Options Now Officially Coexist
The new terms explicitly allow apps to offer alternative payment options alongside Apple's In-App Purchase (IAP). This is one of the DMA's core demands — breaking Apple's monopoly on in-app payments and enabling developers to direct users to other payment channels. For high-transaction products like games and subscription apps, the potential impact of this change is particularly significant.
Before the DMA, Apple required all apps distributed through the App Store to use its native In-App Purchase (IAP) system, taking a 15–30% commission. This policy became widely known through the Epic Games v. Apple lawsuit — Epic introduced a third-party payment channel in Fortnite without authorization and was promptly removed from the App Store, triggering years of litigation. The opening of alternative payments means developers can now integrate Stripe, PayPal, or their own payment systems — though Apple still retains a portion through mechanisms like the CTC, and the specific rate differences will be a key consideration when developers choose their payment strategy.
Strengthened Child Safety Protections
You may not have noticed, but alongside opening up alternative payments, Apple has also emphasized that it will add child safety protections for alternative payments on the App Store. This reflects Apple's consistent position: even when forced to open its ecosystem, it continues to leverage safety and privacy issues to maintain its voice in platform governance.
Expanded Eligibility for Alternative App Marketplaces
The new terms will also expand eligibility for developers to operate alternative app marketplaces and distribute apps via the web. This means more developers will have the opportunity to bypass the App Store entirely and establish their own distribution channels, further fulfilling the DMA's requirements for openness from "gatekeeper" platforms.
Apple and the EU's Ongoing Standoff: From "Gatekeeping" to "Concession"
From a broader perspective, this update is the latest chapter in Apple's long-running battle with EU regulators. Since the Digital Markets Act came into force, Apple has modified its EU business rules multiple times — but previous versions, especially the Core Technology Fee, were criticized as "nominally open, effectively blocking" — using complex fee structures to indirectly preserve its revenue moat.
Apple specifically emphasized that these changes were made "following close collaboration with the European Commission," a phrase that implies the regulator's dissatisfaction with previous proposals drove this round of adjustments. Replacing the complex per-install billing with a transparent 5% commission and eliminating multiple add-on fees objectively lowers the barrier for developers to understand and comply with the rules.
The Digital Markets Act (DMA) was formally passed in 2022 and began applying in September 2023, serving as the EU's specialized regulatory framework targeting the "gatekeeper" role of large tech platforms. The DMA requires platforms designated as gatekeepers to allow third-party app stores, alternative payment methods, and app sideloading. Apple was officially designated a gatekeeper in March 2024 and immediately submitted its first compliance plan — but that plan was questioned by the European Commission for imposing too many additional conditions, and a formal non-compliance investigation was launched the same year. The new terms taking effect in 2026 are the latest result negotiated against the backdrop of that ongoing investigation, reflecting the regulator's substantive pushback against Apple's "formal compliance" approach.
How Developers Should Respond to the New Terms
For members of the Apple Developer Program, Apple has opened the new terms for review — developers can now view and agree to the updated terms in the Apple Developer Program License Agreement. With the official effective date set for October 1, 2026, developers have relatively ample time to assess how these changes will impact their business models.
Apple is also offering 30-minute online appointment consultations, where developers can ask specific questions about these changes. For developers with significant business exposure in the EU market, getting an early handle on their distribution strategy, payment approach, and cost structure will be key to navigating this transition.
Conclusion
Apple's adjustment to its EU App business terms is both a response to regulatory pressure and an attempt to find a new balance between openness and control. From the Core Technology Fee to the 5% Core Technology Commission, from eliminating add-on fees to opening alternative payments, these changes collectively move in a more transparent and simplified direction. However, the specific rate figures, the practical thresholds for alternative distribution, and the implementation details of child safety measures will ultimately determine whether this new system genuinely promotes competition. The formal effective date of October 2026 may be the true test of how well these new rules hold up.
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