Apple is making big changes to how the App Store works in the European Union. These updates aim to meet the EU’s Digital Markets Act (DMA) requirements and help Apple avoid more fines after facing a €500 million (about US$570 million) penalty in April.
These changes affect how developers are charged and what they receive in return, depending on the level of commission they choose. Let’s break it down for you.
Two new fee tiers for developers
Apple has introduced a new two-tier system for the Store Services fee. This fee applies to purchases made outside apps still distributed through Apple’s App Store.
If you’re a developer looking to pay less, Tier 1 might appeal to you. It comes with a 5% commission but only gives access to basic App Store features. This includes app reviews, Apple Support, and privacy nutrition labels. However, this option removes tools like automatic app updates, automatic downloads, and promotional features that many developers rely on today.
Apple’s new Digital Markets Act malicious compliance scheme is blatantly unlawful in both Europe and the United States and makes a mockery of fair competition in digital markets. Apps with competing payments are not only taxed but commercially crippled in the App Store.…
— Tim Sweeney (@TimSweeneyEpic) June 26, 2025
If you want the full suite of App Store tools, you’ll need to go with Tier 2, which carries a 13% commission. All apps on the App Store will be placed in Tier 2 by default, but developers are free to opt for the cheaper Tier 1 if they prefer.
Not everyone is happy with this change. Epic Games CEO Tim Sweeney, a long-time critic of Apple, has already raised concerns. He pointed out that the limited features in Tier 1 could disadvantage developers who choose not to pay the higher fee.
The new Core Technology Commission introduced
Apple is also adding a brand-new fee: the Core Technology Commission. Under this update, Apple will charge a 5% commission on external purchases made within apps still listed on the App Store.
If you’re a developer already signed up for Apple’s alternative business terms, you’ll still be paying the Core Technology Fee (CTF). This €0.50 fee per download is applied annually for every installation over 1 million.
However, changes are coming. Starting January 1, 2026, Apple plans to shift to a single business model for developers in the EU. At that point, the CTF will be replaced by the 5% Core Technology Commission, which will be applied to all digital goods and services sales—whether on the App Store or through third-party marketplaces.
Apple responds to €500M fine, prepares appeal
These changes follow the EU’s ruling on April 23 that found Apple’s “anti-steering” policies in breach of the DMA. These policies prevented developers from guiding users to make purchases outside of the App Store, and the EU considered that a violation of fair competition rules. As a result, Apple was fined €500 million, and if it doesn’t pay by next month, it will face interest charges on the fine.
The EU is also still investigating Apple’s Core Technology Fee and other limits on alternative app stores. So far, the Commission has said Apple has not proven these rules are “necessary and proportionate.”
Despite the penalty, Apple is pushing back. In a statement shared with 9to5Mac, the company said, “The European Commission requires Apple to make a series of additional changes to the App Store. We disagree with this outcome and plan to appeal.”
The European Commission will now assess Apple’s proposed changes to decide if further penalties are needed.
