Apple lowers app store fees in Europe to settle dispute with EU

Facing EU pressure, Apple revamps its European App Store policies, ending per-install fees and cutting commissions to resolve competition concerns.

The European Commission, has been at odds with Apple as it seeks to establish the bloc as a global policeman of big technology firms.

Apple has agreed to a set of sweeping changes for its App Store in Europe, including dropping per-install fees for developers who don’t use the iPhone marketplace, to resolve a dispute with the European Union over competition concerns.

Apple will replace its Core Technology Fee, which is a charge levied on EU developers who bypass the App Store, with a 5% commission on digital transactions in apps distributed outside of its platform, the company said in a statement Tuesday.

The changes mark a major concession to the bloc’s regulators, who have been locked in a lengthy battle with Apple over its tightly controlled App Store. For years, app developers have complained that Apple and Alphabet Inc.’s Google have a stranglehold on smartphones, charging high fees and controlling payments within their dominant digital platforms.

The EU’s executive arm, the European Commission, has been at odds with Apple as it seeks to establish the bloc as a global policeman of big technology firms. In July, the world’s second-most-valuable company lost a court fight to reverse the EU’s crackdown on violating its Digital Markets Act, or DMA.

“These changes resolve Apple’s disagreements with the Commission over business terms and alternative distribution,” Apple said in the statement. “They also reduce complexity by moving every developer that distributes apps in the EU to a single set of business terms.” The company pledged to expand the number of European companies qualified to distribute and monetise iPhone apps outside of Apple’s platform. The new prices and policies go into effect on Oct. 1.

A spokesperson for the commission said it “welcomes Apple’s changes to their business terms, which follow a close dialogue” with the company. “Following today’s announcement, the Commission will monitor Apple’s effective implementation of the new terms,“ the spokesperson said in an emailed statement.

In 2025, the EU fined Apple €500m for breaching the bloc’s strict DMA law, arguing that the company failed to allow developers to link out from its App Store in order to make sales outside of the company’s marketplace.

The App Store overhaul is in response to a separate EU investigation, launched in 2024, which probed whether changes Apple made to comply with the DMA were in line with the bloc’s rules.

Under the new policies, Apple said it will charge a 26% commission for in-app purchases in Europe, down from its standard 30%. Developers in Apple’s various partner programs or providing auto-renewed subscriptions will be charged 15%.

With the changes, Apple will also let developers offer alternative payment options alongside Apple’s payment tool.

Apple will also introduce new child safety measures, including requiring parental approval for any alternative payment processing or links to web transactions for app users under 18.

Third-party app marketplaces are alternatives to Apple’s App Store, which is built into the company’s devices. Apple was forced to allow the marketplaces to exist on its products in the EU as part of the DMA, which took full effect more than two years ago.

Apple has been accused of making app distribution outside of its App Store difficult for developers and consumers in the EU, stoking investigations and fines. The company has financial incentive to do so, with the App Store itself being far more lucrative than outside distribution and payment methods.

Still, other prominent third-party stores exist for Apple devices in the EU. That includes an Epic Games Inc.-backed store from the developer behind hit title Fortnite.

Bloomberg