The pressure from EU regulations has paid off, leading Apple Inc. (AAPL.US) to significantly adjust its App Store charging rules in Europe: it has eliminated per-install fees and will only take a 5% commission on distributions outside the platform.

Apple Inc. (AAPL.US) has agreed to implement a series of significant adjustments to the App Store in Europe, including the elimination of fees charged to developers who do not use the official iPhone app marketplace based on installation numbers, aiming to resolve disputes with the EU regarding competition issues. In a statement released on Tuesday, Apple Inc. announced that it will replace the original "core technology fee" which was levied on EU developers bypassing the App Store with a new charging model. Under this new model, Apple Inc. will take a 5% commission on digital transactions generated by apps distributed outside its platform. This adjustment is seen as a major concession by Apple Inc. to EU regulators. For a long time, both parties have engaged in a protracted struggle over Apple Inc.'s highly controlled App Store. Developers have long complained that Apple Inc. and Alphabet Inc. Class C (GOOGL.US) hold absolute dominance over the smartphone ecosystem, charging high fees while tightly controlling the payment systems within their respective platforms. The European Commission, as the executive body of the EU, has been committed to shaping its image as a "regulatory police" for large global tech companies, often clashing with Apple Inc. In July of this year, the world's second-largest company attempted to overturn the EU's restrictive measures imposed under the Digital Markets Act but faced a setback in court. In its statement, Apple Inc. remarked, "These adjustments address the differences between Apple Inc. and the European Commission regarding business terms and alternative distribution methods. Furthermore, the new regulations unify all developers distributing apps in the EU under one set of business terms, thereby reducing operational complexity." Apple Inc. also pledged to increase the number of eligible European businesses capable of distributing iPhone applications and monetizing them in the region. The new pricing and policy will officially take effect on October 1. A spokesperson for the European Commission stated in an email statement that the Commission "welcomes Apple Inc.'s adjustment of its business terms following our close dialogue," and added, "Following today's announcement, the Commission will oversee Apple Inc.'s effective implementation of the new terms." In 2025, the EU fined Apple Inc. 500 million euros (approximately 579 million dollars) for violating the Digital Markets Act on the grounds that Apple Inc. did not allow developers to provide links within its App Store to direct users to external channels for completing transactions. The comprehensive reform of the App Store is a response to another investigation initiated by the EU in 2024, which aims to examine whether the adjustments made by Apple Inc. to comply with the Digital Markets Act truly meet EU regulatory requirements. According to the new policy, Apple Inc.'s commission rate on in-app purchases in Europe will be reduced from the standard 30% to 26%. Developers participating in various Apple Inc. partner programs or offering applications with auto-renewing subscription services will be charged at a rate of 15%. Meanwhile, Apple Inc. will also allow developers to offer payment methods other than its own payment tools for users to choose from. In addition, Apple Inc. will introduce new child protection measures, including requiring parental consent for users under 18 when using any alternative payment channels or redirecting to the web to complete transactions. The so-called third-party app marketplaces refer to app distribution platforms independent of the built-in App Store on Apple Inc. devices. Under the Digital Markets Act that came into full effect over two years ago, Apple Inc. has been forced to allow the existence of such third-party app marketplaces in the EU. Previously, Apple Inc. was accused of artificially creating barriers in the EU, making it difficult for developers and consumers to distribute and obtain apps outside the App Store, which triggered multiple investigations and fines. Apple Inc. has strong economic incentives to maintain this control, as its official App Store is far more profitable compared to external distribution and payment methods. Despite this, multiple well-known third-party app stores targeting Apple Inc. devices have emerged in the EU, including an app store supported by Epic Games, the developer of the popular game Fortnite.