Apple has introduced simplified business terms for developers distributing apps on the App Store in the European Union, but the revamped fee structure has drawn immediate condemnation from Epic Games and cautious skepticism from consumer advocates. The changes, announced August 18, aim to resolve a long-running dispute with the European Commission over compliance with the Digital Markets Act.

What You Need to Know

Apple replaced its previous EU App Store fee system with a single set of business terms that reduce commissions but add a 5% Core Technology Commission for alternative distribution. Epic Games called the plan 'junk fees' that fail to open the mobile app ecosystem to competition as required by the Digital Markets Act. Consumer groups warned the details may still hurt developers and users. Developers can sign the new terms immediately, with changes effective October 1.

The New Fee Structure at a Glance

Under the updated terms, developers distributing apps in the EU face a tiered commission system. An App Store app using Apple In-App Purchase will attract a 26 percent commission, reduced to 15 percent for qualifying developers and auto-renewing subscriptions after their first year. Apps using alternative payment processing pay 20 percent, or 10 percent for qualifying developers. Apps linking to the web to complete purchases incur a 15 percent commission, again reduced to 10 percent for qualifying developers. Apps distributed through an alternative marketplace or the web pay Apple a 5 percent Core Technology Commission on digital transactions.

  • Apple In-App Purchase: 26% standard, 15% for qualifying developers and first-year renewals.
  • Alternative payment processing: 20% standard, 10% for qualifying developers.
  • Web link outs: 15% standard, 10% for qualifying developers.
  • Alternative marketplaces or web distribution: 5% Core Technology Commission on digital transactions.

Apple claims the changes follow close collaboration with the European Commission and resolve disagreements over business terms and alternative distribution. The company called Apple In-App Purchase the safest option and noted child safety measures for alternative payments.

Epic Games Rejects the Plan

Epic Games, a longstanding critic of Apple's App Store practices, dismissed the scheme as junk fees. In a statement, the company argued the plan does nothing to open up the mobile app ecosystem to competition as required by the Digital Markets Act. The law, Epic said, makes clear that Apple must allow developers to offer link outs to the web for purchases free of charge and must allow effective use of competing stores. The critique echoes broader concerns that Apple's fee structure still discourages alternative distribution.

Consumer and Regulatory Reactions

The European Consumer Organisation (BEUC), an umbrella group representing 42 independent consumer organizations across 31 countries, responded with caution. Sébastien Pant, the group's senior officer for competition and digital enforcement, noted that on paper there appear to be some improvements with a simpler and lower fee structure. But he warned the devil is in the detail and that developers will likely pass on fees to consumers. Pant also questioned whether users will truly benefit, citing potential scare screens and artificial friction Apple created around alternative app stores. The European Commission has not yet issued a formal response to Apple's latest proposal, which comes after a €500 million fine earlier in 2025 for non-compliance with the Digital Markets Act.

Why This Matters

The outcome of this dispute will shape how apps are distributed and monetized in the EU for years to come. If the Commission accepts Apple's terms, developers may still face significant fees that limit the viability of competing app stores and payment systems. Consumers, however, could see higher prices as developers pass on costs. The case also serves as a bellwether for digital regulation worldwide, with other jurisdictions watching how the Digital Markets Act enforcement unfolds. Epic Games and consumer groups have made clear they will continue to press for more fundamental change, keeping the pressure on both Apple and regulators.