New Fee Structure Takes Effect January 1, 2026
Apple is changing how it charges developers who distribute apps outside its own App Store in the European Union. The new structure consolidates a previously layered fee system into a single 5% Core Technology Commission on digital goods and services sold through alternative marketplaces and web distribution channels.
Simplification of Per-Install Fee
The old fee model worked like this: developers distributing through alternative channels paid a per-install charge on top of other commissions, creating a stack of costs that was difficult to predict and, in some cases, financially punishing for apps with large free user bases. Under the revised framework, Apple charges a flat 5% on paid apps and digital goods or services sold outside the App Store.
EU’s Digital Markets Act Influence
The EU’s Digital Markets Act designates certain large platforms as “gatekeepers” and imposes obligations on how they treat competing services, developers, and distribution channels. Apple was designated as a gatekeeper for its iOS operating system and App Store. Non-compliance carries real consequences, including potential fines that can reach up to 10% of global annual turnover.
Implications for Smaller Developers
For smaller developers considering alternative distribution in the EU, the new model lowers the barrier meaningfully. A free app with millions of installs but modest in-app revenue could have faced substantial charges under the old structure. However, 5% on top of whatever a marketplace operator charges is still a cost that did not exist before the DMA forced Apple’s hand.
Revenue Implications for Apple
The company earns roughly 15% to 30% on App Store transactions depending on developer size and app category. A developer who shifts to an alternative marketplace and pays 5% to Apple plus a lower marketplace fee could end up costing Apple revenue per transaction.
