Apple introduces tiered commission rates for EU developers starting October 1

Apple has announced new commission rates for in-app transactions that will apply to developers in the European Union, effective October 1. The update comes in response to ongoing legal challenges under the Digital Markets Act (DMA). The company has replaced its controversial Core Technology Fee with a new structure called the Core Technology Commission.

The new commission rates vary depending on how apps process transactions. Developers participating in the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program will benefit from reduced rates. For the majority of developers using Apple's In-App Purchase technology, a 15 percent fee will apply. However, for those not enrolled in the programs, the commission rate will increase to 26 percent.

Apps that utilize alternative payment processing tools will incur a 20 percent fee, while apps that link to external sites for purchases will also be charged 15 percent. Members of the aforementioned programs using these methods will see their rates drop to 10 percent. Notably, apps distributed outside the Apple App Store will face a flat commission rate of just 5 percent.

Apple's legal struggles in Europe have been extensive, as it attempts to comply with the DMA's stringent regulations on competition. The company recently lost its bid to avoid being classified as a "gatekeeper," which subjects it to more rigorous oversight. In addition to its European challenges, Apple is facing scrutiny in the United States regarding its payment practices and is seeking legal backing to maintain a commission of 5 to 15 percent on transactions made through third-party payment systems. These changes reflect a broader push by regulators to foster competition and provide developers with more payment options.