Apple has announced a new set of App Store business terms for developers in the European Union, replacing its controversial Core Technology Fee (CTF) with a revised commission structure.
The changes follow discussions with the European Commission and are aimed at resolving Apple’s disagreements with EU regulators over alternative app distribution and payment options. Under the new framework, developers across the EU will operate under a single set of business terms.
Developers can opt into the new terms immediately, with the changes taking effect on October 1.
Previously, developers who distributed apps outside Apple’s App Store could be subject to a Core Technology Fee based on installations. Under the revised terms, Apple will eliminate that fee and introduce a 5% Core Technology Commission on transactions made through apps distributed via alternative channels.
Apple is also removing its initial acquisition fee and store services fee as part of the overhaul.
The new commission structure is as follows:
App Store with Apple In-App Purchase: 26%, or 15% for qualifying developers, including members of the Small Business Program and subscriptions after the first year. App Store with alternative payment processing: 20%, reduced to 10% for qualifying developers. App Store apps linking to external websites for purchases: 15%, or 10% for qualifying developers. Apps distributed through alternative marketplaces or the web: 5% Core Technology Commission. The revised rules will also give developers greater flexibility in how they handle payments. Apps can now offer Apple’s In-App Purchase system alongside alternative payment methods within the same app.
Previously, developers were not permitted to provide alternative payment options alongside Apple’s payment system.
However, developers choosing which payment methods to support will have to retain those selections for at least 12 months before making changes.
Apple said the updated framework is intended to simplify its business terms in the EU while providing developers with more options for distributing apps and processing payments.