Apple Revamps App Store Fees in Europe Following EU Pressure and $500M Fine

Apple Responds to EU's Digital Markets Act with Major App Store Policy Changes

In a direct response to growing regulatory scrutiny and a substantial €500 million fine from the European Union, Apple has unveiled a new fee structure for its App Store across Europe. This pivotal change comes as the tech giant faces mounting pressure to comply with the EU's Digital Markets Act (DMA), designed to foster fair competition and curb monopolistic practices in the digital marketplace.

Two-Tier Fee Model Introduced for Developers

Under the updated policy, Apple is introducing a two-stage (tiered) commission system for developers distributing apps through the European App Store:

• Tier 1 – The entry-level option grants developers basic access to essential App Store features at a reduced 5% commission rate. Core services covered in this tier include app review processes, privacy labeling, and access to Apple’s technical support. However, advanced functions like automatic updates, background downloads, and Apple’s promotional tools remain unavailable at this level.
• Tier 2 – To unlock the full suite of App Store functionalities, developers must opt for Tier 2, which comes with a 13% commission. By default, all apps are enrolled in Tier 2. However, developers retain the flexibility to downgrade to Tier 1, trading lower fees for fewer features.

New Core Technology Commission on External Purchases

To further align with DMA requirements, Apple is introducing a new Core Technology Commission (CTC), imposing a 5% fee on all external purchases made via apps distributed from the App Store. Notably, this commission is applied in addition to existing fees—rather than replacing earlier commissions such as the Core Technology Fee (CTF).

Additional Fees for Alternative App Distribution Models

Developers adopting alternative business models outside Apple’s direct payment ecosystem will continue to incur a €0.50 yearly fee for each app download surpassing one million installations. This policy underscores Apple’s continued effort to maintain oversight and monetization of high-traffic apps distributed on its platform.

Future Moves: Unifying Commission Structures Across the EU

In a forward-looking statement, Apple announced plans to standardize its business model for the European Union starting January 2026. The CTF will be replaced by a flat 5% commission covering the sale of digital goods and services, both within the App Store and across alternative app marketplaces. This unification aims to simplify compliance for developers and accommodate a rapidly evolving regulatory environment.

Market Impact and Competitive Implications

Apple’s sweeping changes are a direct consequence of the EU ruling that previously penalized the company’s restrictive App Store policies, particularly its barriers preventing users from accessing alternative payment methods. If Apple fails to pay the current fine by the stipulated deadline, late fees and additional penalties may apply.

EU’s Ongoing Evaluation and Apple’s Position

The European Commission has indicated that Apple has yet to fully justify the necessity and proportionality of some of its restrictions and fees. Apple, in a public statement, maintained its disagreement with the EU’s decision and signaled its intention to formally appeal. Meanwhile, the Commission continues to examine Apple’s proposed adjustments to determine if further enforcement actions are required.

Advantages and Industry Context

The new fee system could benefit smaller developers by offering lower commissions for basic features, potentially broadening access to the App Store and fostering more diverse app offerings. However, larger businesses and apps with significant download volumes may still face substantial annual costs. The changes highlight Apple’s growing need to balance its profit models with regulatory compliance as digital markets become increasingly competitive and scrutinized worldwide.

For tech professionals and app creators, these developments mark a notable shift in the global app ecosystem—one likely to influence monetization strategies, product roadmaps, and the competitive landscape for years to come.