By ByteBot
October 1 is 24 days away. If you distribute iOS apps in the EU, Apple just handed you a decision that locks in your payment strategy for the next year — and you have to make it before that deadline. Apple replaced its controversial per-install Core Technology Fee with a tiered commission structure. The European Commission approved the changes. Epic Games did not.
The Old Fee Was Indefensible — and Now It’s Gone
Apple’s original “compliance” with the EU Digital Markets Act was a masterpiece of creative regulatory obstruction. The Core Technology Fee charged €0.50 per install beyond one million annual downloads — regardless of whether those installs generated a single euro of revenue. A viral free app with two million installs could owe €500,000. Not on revenue. On installs. The European Commission launched a non-compliance investigation almost immediately. The fee is now dead.
The replacement shifts Apple’s EU model from per-install punishment to percentage-of-revenue, which is how every other platform operates. Free app developers — who faced the most exposure under the old structure — owe nothing under the new system unless they charge for something. That alone is a meaningful improvement.
Four Paths, Four Price Tags
Starting October 1, EU developers must choose from four commission tiers based on how they distribute and how they collect payment:
- App Store + Apple IAP: 26% standard, 15% for Small Business Program members and subscriptions past year one
- App Store + alternative payment processing: 20% standard, 10% reduced tier
- App Store + external link-outs (web checkout): 15% standard, 10% reduced tier
- Alternative marketplace or direct web distribution: 5% Core Technology Commission
The 5% sideload rate is competitive in any global context — cheaper than Steam at 30%, better than most PC storefronts. The 26% IAP rate is still 11 points above Google Play’s baseline. Apple conceded the minimum the law forced them to, and not a percentage point more.
The 12-Month Lock-In Is the Real Risk
Once you select your payment structure, you are locked in for 12 months across all EU storefronts. This is not a settings toggle. If you add external link-outs and conversion rates underperform — because users don’t follow the link, or because checkout friction kills sales — you cannot switch back until 2027. The right move is to model your revenue mix before accepting any new terms. Subscription revenue, one-time purchase volume, and how much of your audience came from App Store search all factor in.
Epic Calls It Junk Fees. The EC Calls It Progress.
Epic Games, which operates its own App Store in the EU, is not satisfied. Their argument: the Digital Markets Act requires Apple to allow link-outs “free of charge,” making the 15% link-out fee a DMA violation. They also pay 5% on every Epic Games Store sale in the EU. Their statement: “Apple announced new junk fees in the EU that do nothing to open up the mobile app ecosystem to competition.”
The European Commission welcomed the changes but said it will “monitor implementation.” Analyst John Gruber characterized the outcome as “a near-total victory for Apple.” Apple reduced its App Store IAP commission from 30% to 26% — a four-point concession that preserves the company’s core margin structure. Epic’s legal challenges remain active, and further EC enforcement is possible.
What EU Developers Should Do Before October 1
Four weeks is enough time to make this decision correctly — but not enough to delay it. Here is how to think through the choice:
- Small developers dependent on App Store discovery: Stay with Apple IAP. Losing search, ratings, and analytics to save a few percentage points makes no economic sense unless you already have a large owned audience.
- Large publishers with newsletters, social followings, or existing user bases: Run the math on external link-outs at 15%, or evaluate the 5% alternative marketplace route if you meet the eligibility requirements.
- Free app developers: No payment structure action required. Your per-install liability is eliminated.
- Subscription apps: Year two and beyond subscriptions qualify for reduced rates automatically. Build tracking into your reporting pipeline — monthly transaction data is due within 15 days after each calendar month.
To accept new terms: sign into your Apple Developer account as Account Holder, accept the new Attachment 14, choose your payment configuration, and set up monthly reporting. Only the Account Holder can accept — not other team members.
The Verdict
The 5% sideload rate is the most developer-favorable App Store pricing Apple has ever offered in the EU — whether they chose to or regulators forced it. The elimination of per-install fees removes a genuine existential risk for free app developers. But the 26% IAP rate remaining 11 points above Google Play makes clear that Apple is extracting every euro the law currently permits. EU developers have real choices now. They didn’t before. That counts for something — even if Epic disagrees.
