Updated 25 Aug 2026: Apple’s published August 18 materials specify the commission schedule that the current dossier only described generically: 26% for App Store IAP, 20% for alternative processing, 15% for external-link purchases, reduced 15%/10% rates for qualifying programs and subscriptions, and 5% CTC for alternative distribution. The update also adds the 12-month payment-option commitment and transaction-reporting implications.

Key details

  1. Apple announced the updated EU business terms on August 18, 2026; the main changes take effect October 1, 2026.
  2. Standard App Store commission with Apple In-App Purchase is 26%.
  3. Standard commission for alternative in-app payment processing is 20%.
  4. Standard commission for qualifying external-link purchases is 15%.
  5. Qualifying reduced-rate programs and eligible subscriptions after year one pay 15% for IAP and 10% for alternative processing or external-link purchases.
  6. Apps distributed through alternative marketplaces or Web Distribution are subject to a 5% Core Technology Commission on relevant digital transactions.
  7. The per-install Core Technology Fee, Initial Acquisition Fee and Store Services Fee are being removed under the unified model.
  8. Apps can combine IAP and alternative payment options, but developers must maintain their selected payment configuration for 12 months.
  9. Developers using alternative payments must handle associated support and reporting obligations themselves.

What builders should take away

  1. Rebuild EU unit-economics models with the exact 26%/20%/15%/5% standard rates and the 15%/10% reduced rates rather than relying on the older install-fee framework.
  2. Compare net margin after payment-processor fees, fraud, tax handling, refunds and support—not just Apple’s commission percentage—before moving transactions away from IAP.
  3. Small Business Program participants should model the 10% alternative-payment/external-link rate separately from the 20%/15% standard rates; the economics can be materially different.
  4. Treat the 12-month payment-option commitment as a product constraint. Run checkout and conversion analysis before locking in a mixed IAP/alternative-payment configuration.
  5. For alternative distribution, forecast transaction revenue rather than annual installs when estimating Apple charges under the 5% CTC.
  6. Build reliable monthly transaction reporting and reconciliation for non-Apple payment paths so Apple commissions, provider settlements and customer entitlements remain auditable.
  7. Keep regulatory change risk in scenario planning: the October terms are concrete, but EU scrutiny and litigation may still change the commercial rules.

What changed

Apple updated its Developer Program License Agreement on August 18, 2026 with unified business terms for apps distributed in the EU, effective October 1. The existing Alternative Terms Addendum and StoreKit External Purchase Link Entitlement will be superseded by Attachment 14. The per-install Core Technology Fee will be replaced by a 5% Core Technology Commission on digital transactions in apps distributed through alternative marketplaces or Web Distribution. Apple’s published rate schedule is now explicit: App Store apps using Apple In-App Purchase pay 26% at the standard rate; apps using alternative in-app payment processing pay 20%; and qualifying purchases completed through external links are charged 15%. Developers in the App Store Small Business Program, Mini Apps Partner Program or Video Partner Program, and qualifying subscriptions after the first year, receive lower rates: 15% for IAP and 10% for alternative processing or external-link purchases. Apps can also offer alternative payments alongside IAP, but the selected payment-option configuration must be maintained for 12 months.

Why it matters

The change replaces an install-threshold risk with a more conventional revenue-linked fee model and gives developers a concrete basis for comparing EU distribution and checkout strategies. A small-business-program app using an external checkout can face a 10% Apple commission rather than the standard 15%, while alternative distribution outside the App Store carries a 5% CTC on relevant digital transactions. Those headline rates are not the whole cost: developers using non-Apple payments must handle payment processing, taxes where applicable, transaction reporting, refunds, subscription support and entitlement operations themselves. Builders should model effective contribution margin by payment path and program status rather than comparing Apple percentages in isolation.

The exact rate table changes the economics materially

Under Apple’s unified EU terms, the standard commission is 26% for App Store purchases made with Apple In-App Purchase, 20% for purchases processed with an alternative payment provider inside the app, and 15% for relevant purchases completed after an external link. Developers in Apple’s qualifying reduced-rate programs, plus qualifying auto-renewing subscriptions after their first year, pay 15% for IAP and 10% for alternative processing or external-link purchases. These rates make the checkout decision an explicit margin calculation rather than a generic choice between Apple and non-Apple payments.

The per-install Core Technology Fee is being retired

For iOS and iPadOS apps distributed outside the App Store through alternative marketplaces or Web Distribution, Apple replaces the old per-install Core Technology Fee with a 5% Core Technology Commission on relevant sales of paid apps and digital goods or services. That removes the old annual-install threshold dynamic but still leaves Apple participating in transaction revenue generated through alternative distribution.

Alternative payments can sit beside IAP, with a 12-month commitment

Starting October 1, EU App Store apps can offer Apple In-App Purchase alongside alternative in-app payment processing and/or external purchase offers. Apple requires developers to select their supported payment options and maintain that configuration for 12 months, so checkout experimentation is not completely frictionless. Teams should decide the mix only after modeling conversion, support burden and fee differences over a full year.

Non-Apple commerce shifts operational work to the developer

For transactions Apple does not process, developers remain responsible for payment-provider costs, customer support, refunds and subscription management, and they must report qualifying alternative-payment transactions to Apple for commission calculation. Applicable tax collection may also be the developer’s responsibility. A lower Apple commission therefore does not translate one-for-one into higher margin.

The terms become one EU framework

The Alternative Terms Addendum for Apps in the EU and the StoreKit External Purchase Link Entitlement Addendum are being phased out in favor of Attachment 14 of the Developer Program License Agreement. The new framework takes effect October 1, 2026, or when the developer agrees to the updated DPLA if later. Apple also expands eligibility for alternative marketplaces and Web Distribution, reducing some of the legal-establishment requirements that previously limited those routes.

Regulatory settlement does not remove policy uncertainty

Apple says the changes follow close collaboration with the European Commission and resolve disagreements over its earlier business terms. Reuters reported that the Commission will monitor implementation, while Epic Games continued to criticize the revised fees. Builders should treat the October model as the operative commercial framework, but not assume that EU app-distribution policy is permanently settled.

What to watch next

  • How the October 1 transition works in App Store Connect for developers moving from the discontinued alternative terms.
  • Whether Apple or the European Commission publishes further clarifications or worked examples for mixed payment/distribution scenarios.
  • How developers’ effective payment costs compare once processor fees, taxes, support and conversion effects are included.
  • Whether the European Commission seeks further changes after monitoring implementation.
  • Whether alternative-marketplace and Web Distribution adoption changes once the per-install CTF is replaced by a 5% transaction commission.

Still unclear

  • The October framework is future-dated as of August 25, so operational edge cases may still be clarified before it takes effect.
  • A developer’s effective Apple rate depends on program status, subscription age, payment method and distribution path; the headline percentages do not describe every transaction.
  • Non-Apple payment costs vary by processor, geography, tax setup, fraud profile and support burden.
  • Regulatory scrutiny remains active even though Apple says the changes resolve its disagreements with the European Commission.

Sources

Direct reading behind this dossier.

4 sources
Changes for apps in the European Union
Apple Developer primary/vendor

Primary operational documentation for unified terms, alternative distribution, payment options, reporting obligations and the 5% Core Technology Commission.

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