EU Commission Potentially Approves Apple's New App Fee Structure

The European Commission is reportedly poised to endorse Apple's revised fee framework for app developers operating within the EU. This development follows Apple's previous imposition of a controversial fee structure that faced significant regulatory scrutiny.

According to sources cited by Reuters, Apple is on track to evade further penalties that could reach up to $50 million per day by adapting its fee model in response to regulatory pressures. This change comes after the company was fined EUR500 million for violations related to the Digital Markets Act, specifically for restricting app developers from directing users to alternative purchasing options.

In light of these regulatory challenges, Apple has announced a shift from its previous 'Core Technology Fee'--which charged app developers based on the number of app installations--to a more simplified 'Core Technology Commission' model. This new structure will impose a 5% fee on revenues generated from the sale of digital content, set to take effect in early 2026 across the EU.

Under this new model, app developers will face additional fees for linking to their own purchasing alternatives outside of the app. This includes an 'Initial Acquisition Fee' of up to 2% and a 'Store Services Fee' that varies between 5% and 13%, depending on the extent to which an app utilizes App Store features. Notably, developers who choose to forego essential App Store services, such as automatic updates, may incur a lower fee of 5%.

Furthermore, applications on iOS and iPadOS that utilize Apple's mandated in-app purchasing system will be subject to a 20% commission. However, for the first time, Apple will allow external payment processors for in-app purchases within the EU, reducing its commission to 17% in such cases.

This adjustment effectively lowers the App Store commission rates from the standard 30% to 20% for general sales and from 15% to 13% for smaller developers within the EU market.

While this move allows app providers the flexibility to link to their own sales channels or integrate their payment systems, Apple will maintain its commission structure on revenue generated from digital content sales.

The Digital Markets Act mandates that firms on a gatekeeper platform, such as Apple's iOS and App Store, must inform customers of their own offerings without incurring fees. The compatibility of Apple's new fee structure with these regulations remains uncertain. Officials in Brussels previously indicated that Apple could charge a fee for initial acquisitions, but only if it is deemed reasonable. Currently, the Commission is reviewing Apple's latest proposals, emphasizing that all options are still under consideration.