Apple has announced a significant overhaul to its App Store business model in the European Union, aiming to align with the EU’s Digital Markets Act (DMA) and avoid further regulatory penalties.
The changes introduce a tiered system for the App Store’s Store Services fee, as well as a new commission on purchases made outside of apps.
Under the new structure, developers will now have two tiers to choose from. Tier 1 offers limited App Store features in exchange for a reduced 5 percent commission on in-app purchases. This tier includes basics such as app reviews, privacy nutrition labels, and Apple Support, but excludes several tools developers currently rely on, such as automatic updates, app downloads, and promotional tools.
For access to the full suite of App Store features, developers must opt into Tier 2, which carries a 13 percent commission. All apps will be enrolled in Tier 2 by default, though developers can choose to downgrade to Tier 1 if they prefer the lower fee and reduced services.
In addition to the tiered system, Apple is introducing a new “Core Technology Commission.” This imposes a 5 percent fee on external purchases made through apps distributed via the App Store. Developers operating under Apple’s alternative business terms will continue to pay the previously established Core Technology Fee (CTF) — a €0.50 charge for each annual app install exceeding 1 million.
Apple has also revealed plans to unify its EU developer business model by January 1, 2026. At that time, the company will transition from the Core Technology Fee to a flat 5 percent Core Technology Commission for digital goods and services sold on both the App Store and alternative marketplaces.
These changes are a direct response to Apple’s ongoing regulatory battles in the EU. On April 23, the European Commission fined Apple €500 million (roughly $570 million), citing violations of DMA rules related to anti-steering practices that prevent developers from directing users to external payment options. The Commission warned that Apple could face interest penalties if it fails to pay the fine by next month.
Epic Games CEO Tim Sweeney, a vocal critic of Apple’s App Store policies, has already criticized the new structure, calling out limitations imposed on developers who choose the lower-cost Tier 1.
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Despite implementing these changes, Apple plans to appeal the EU’s decision. “The European Commission is requiring Apple to make a series of additional changes to the App Store,” the company stated. “We disagree with this outcome and plan to appeal.” The EU Commission will now review Apple’s proposed changes to determine whether further non-compliance fines are necessary.
