Apple has settled its long-running App Store fee dispute with the European Commission, announcing a new set of terms that will take effect across the EU on October 1. The agreement brings sweeping changes to how Apple charges developers in Europe, including the removal of per-install fees for developers who do not use the iPhone maker's marketplace.

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

— Bloomberg (@business) August 18, 2026

The dispute traces back to the EU's Digital Markets Act, which designated Apple a gatekeeper in 2023 and required it to open the iPhone to rival app marketplaces and alternative payment systems. Apple introduced the contested fee structure in January 2024, when it began allowing alternative distribution in the bloc with iOS 17.4, and the Commission opened non-compliance proceedings weeks later, issuing preliminary findings in 2025 that its rules restricted developers from steering users to offers outside the App Store. The stakes were significant: the DMA authorizes fines of up to 10% of a company's global annual turnover, and the Commission had already fined Apple €500 million in April 2025 over anti-steering practices in music streaming following a complaint from Spotify.

Core Technology Fee Replaced

The headline change is the removal of the Core Technology Fee, which charged developers a per-install fee once they hit one million installs in a 12-month window. That per-install charge ran €0.50 and applied regardless of whether an app earned any revenue, a structure that drew criticism from major developers, including Epic Games and Spotify, who argued it penalized popular free apps. The fee is being replaced by the Core Technology Commission, a flat 5% cut on digital transactions in apps distributed outside the App Store. The initial acquisition fee and the store services fee are also gone under the new structure.

Lower Commissions Across the App Store

For developers selling through the App Store using Apple's own in-app purchase system, the commission rate drops from 30% to 26%. That is a modest cut, but it applies across the board for standard apps. The 30% rate has been Apple's baseline since the App Store launched in 2008 and has set the benchmark for mobile app stores, with Google's Play Store facing its own legal challenges over commissions after Epic won a U.S. antitrust verdict against Google in 2023.

Developers in Apple's Small Business Program, Mini Apps Partner Program, or Video Partner Program get a better deal, paying 15% on in-app purchases. The same 15% rate applies to auto-renewing subscriptions after their first year.

Apps using alternative payment processing inside the App Store will face a 20% commission, while developers in the qualifying programs mentioned above pay 10%.

A New Route for Link-Out Purchases

For apps that direct users outside the app to complete a purchase, Apple is setting the commission at 15%. Smaller developers in eligible programs pay 10%. Apps distributed through alternative app marketplaces or directly via the web will only pay the 5% Core Technology Commission, and no other fees apply in that case.

Apple is also opening up something that was not previously allowed in the EU: developers can now offer Apple In-App Purchase alongside alternative payment options in the same app. Previously, it was one or the other. There are conditions. Developers must pick their payment setup and stick with it for 12 months, a requirement Apple says is designed to give users a consistent experience.

Child Safety Measures Also Updated

Apple has added new child safety rules tied to the updated payment options. Apps in the Kids category will not be allowed to link out to websites for purchases. For users under 18, apps using alternative payments or link-out purchases must include a parental gate. For users under 13, link-outs to websites for transactions are blocked entirely.

The company is also widening who can run an alternative app marketplace in the EU. New qualifying criteria include being publicly traded, being backed by established venture funding, having completed a financial audit, or being a government or nonprofit entity. Only a handful of third-party marketplaces have launched in the EU since Apple began permitting them in 2024.

Epic Games Pushes Back

Despite the settlement with the European Commission, Epic Games is not satisfied. Apple last week filed a similar proposal with the U.S. District Court for the Northern District of California as part of its ongoing six-year legal battle with the Fortnite maker, a conflict that began in 2020 when Apple removed Fortnite from the App Store after Epic added a direct payment option that bypassed Apple's in-app purchase system.

Epic says Apple's proposed 15% link-out fee in the U.S. is outside what the Ninth Circuit permits, and it has roughly 60 days to file its opposition, backed by expert witnesses. Epic is pushing for zero commission on link-out purchases for U.S. users. The California court's handling of that opposition will determine whether developers outside the EU see terms comparable to the settlement taking effect October 1.