On Tuesday, Apple said that third-party app stores in the EU would pay a 5% commission on in-app purchases, a move intended to resolve the ongoing disagreement with European regulators. Under the revised rules, apps that use Apple's own billing will pay a 26% commission, down from the previous 30%. Apps that use alternative payment systems will pay a 20% commission.
The changes come after months of tension between Apple and the European Commission over the latter's requirement that large technology companies allow third-party app stores and alternative payment methods. The requirement, which took effect in 2024, was designed to increase competition and give consumers more choices. Apple had originally resisted these requirements, arguing that sideloading apps and using external payment systems could compromise user security and privacy. However, the European Commission had threatened to impose significant fines if Apple did not comply, prompting the company to revise its fee structure.
Under the new schedule, apps that direct users to a website for payment will incur a 15% fee. These rates replace the previous structure, which had different fees for various types of purchases, including a 30% standard commission for most digital goods and services. Apple's new approach is notable because it introduces a separate, lower commission for transactions that occur entirely within third-party app stores. This is a departure from its earlier stance, where Apple insisted that its own payment system be used for all in-app purchases and charged a flat commission regardless of the payment method.
Apple maintains that its App Store provides a secure environment for users, and that the new fees are necessary to uphold security and privacy standards. The company has repeatedly stated that its commission helps fund the development of tools, developer support, and the review process that keeps malicious software out of the ecosystem. The European Commission had threatened fines if Apple did not allow third-party app stores and alternative payment methods.
The new fee structure appears to satisfy the regulator, avoiding any financial penalties. While the commission has not yet issued a formal statement, industry analysts suggest that the revised rates align with the requirements of the EU regulation and are likely to be accepted.
Some developers still express concern that the fees remain high, especially for smaller app makers, but they acknowledge the changes are a step forward. For example, a developer who previously paid 30% on every transaction will now pay either 26% (if using Apple's billing) or 20% (if using a third-party payment system). The 5% commission on third-party app store transactions is also seen as a compromise, though some argue it still eats into profit margins for indie developers who rely on app sales as their primary income. Some larger companies have been vocal critics of Apple's fees in the past, and while they have not yet commented on the new structure, the reduction is likely to be welcomed.
From an investor perspective, the settlement removes a major legal uncertainty for Apple. The company's services segment, which includes App Store revenue, has been a key growth driver. While the lower commissions could lead to a slight decrease in revenue per transaction, the avoidance of potential fines - which could have reached billions of euros - and the clarity gained from regulatory compliance may outweigh that loss. Additionally, the new structure could encourage more developers to enter the EU market, potentially increasing overall transaction volume.
The revised fee schedule is set to take effect later this year, and Apple has said it will provide further guidance to developers in the coming weeks. For now, the move signals a pragmatic shift in Apple's approach to regulation, one that balances its business interests with the demands of European law. Whether other regions will follow the EU's lead remains to be seen, but the outcome sets a precedent for how tech giants might adapt to antitrust pressures worldwide.