BRUSSELS — Apple announced on Tuesday, August 18, 2026, that it will eliminate the per-install Core Technology Fee charged to developers in the European Union, replacing the structure with a flat 5% commission on digital transactions for apps distributed through alternative marketplaces or the web.
The revised business terms will take effect on October 1, 2026. Under the outgoing framework introduced to comply with the European Union's Digital Markets Act, Apple charged developers 0.50 euro for each annual install or update once an application surpassed one million downloads within a twelve-month window. That fee structure drew heavy criticism from software developers and regulatory authorities because it applied charges even when individual installs generated zero revenue.
Restructuring Commission Tiers and Payment Terms
In place of the installation levy, the newly announced Core Technology Commission will apply a flat 5% rate to digital goods and services transactions processed outside the standard App Store. Simultaneously, Apple adjusted its traditional App Store fee tiers, lowering its in-app purchase commission from 30% to 26%. For developers enrolled in specialized initiatives such as the App Store Small Business Program, the Mini Apps Partner Program, or for auto-renewing subscriptions past their initial twelve-month cycle, that rate drops further to 15%.
Applications utilizing alternative payment processing systems will face reduced fees of 20% generally, or 10% for qualifying program participants. Furthermore, apps incorporating out-of-app links directing users to external web checkouts will consolidate previous initial-acquisition and store-services fees into a single 15% charge, discounted to 10% for program-enrolled developers.
Developer Marketplace Requirements and Compliance Outlook
Alongside fee adjustments, Apple eased operational criteria and technical qualification requirements for developers seeking to establish independent software marketplaces on iOS devices within the region. Company representatives stated that the updated terms stem from ongoing dialogue with the European Commission to resolve outstanding compliance concerns.
The European regulatory body has not yet issued a formal public evaluation regarding whether the revised fee model fully satisfies statutory obligations under digital competition statutes.
Why did Apple decide to replace the EU Core Technology Fee?
Apple decided to replace the Core Technology Fee due to intense pushback from developers and ongoing regulatory scrutiny from the European Commission over charging fees on non-monetized software installations. The revised flat 5% commission model aims to resolve compliance disputes under the Digital Markets Act beginning October 1, 2026.
The structural changes and updated fee schedules were formally disclosed by Apple on Tuesday, August 18, 2026.
The new fee terms and alternative marketplace operating guidelines officially take effect on October 1, 2026.