Resolution of the dispute between Apple and the European Commission
Following extensive discussions regarding Digital Markets Act (DMA) compliance, Apple has announced a major overhaul of its commercial conditions for software developers in the European Union.
This simplified legal and financial structure aims to resolve regulatory scrutiny in Brussels while providing a predictable framework for iOS and iPadOS app distribution.
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Abolition of the per-download 'Core Technology Fee'
The most significant change centers around the elimination of installation-based fees:
- End of the per-install fee: Developers will no longer be charged €0.50 per first annual install exceeding the one-million threshold.
- Flat 5% rate outside App Store: A single 5% fee applies strictly to sales of digital goods and services outside Apple's official store.
- Ancillary fees abolished: Initial acquisition fees and supplementary service charges have been eliminated.
New Apple Commission Rates in the European Union
Standard vs. reduced rates based on distribution channel and payment solution:
| Distribution Channel & Payment | Standard Commission Rate | Reduced Rate (Small Business & Subscriptions > 1yr) |
|---|---|---|
| App Store (Apple In-App Purchase) | 26% commission | 15% commission |
| App Store (Alternative In-App Payment) | 20% commission | 10% commission |
| App Store (External Web Payment Links) | 15% commission | 10% commission |
| Alternative Marketplaces or Direct Web | 5% commission | 5% commission |
Coexistence of payment methods and youth protection
Developers can now present Apple's In-App Purchase alongside third-party payment providers within the same user flow, provided the selection remains clear and is maintained for at least 12 months.
In tandem, Apple and EU regulators have reinforced safety rules for younger users:
- External links barred for kids: Applications built for children under 13 or listed in the 'Kids' category cannot direct users to external payment pages.
- Mandatory parental verification: Users under 18 require parental or legal guardian consent before completing transactions via alternative checkout engines.
What this means for iPhone users in Europe
Key benefits and safety considerations:
- ✓Benefit 1: Broader availability of alternative app marketplaces and direct downloads via Safari.
- ✓Benefit 2: Potential price reductions on digital subscriptions as developers incur lower commission costs.
- ✓Security 1: Apple's notarization review remains mandatory to detect and block malware before installation.
- ✓Security 2: Third-party purchases made outside Apple's system are not covered by Apple Customer Support for refunds.
Do these new rules apply to users outside the EU?
No. These terms are exclusive to accounts and devices registered within the 27 EU member states to comply with the European Digital Markets Act.
Is downloading apps outside the App Store secure?
Yes. Apple enforces a baseline technical security review (notarization) on all distributed software to verify safety and ensure apps are free from malicious code.
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