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Apple simplifies EU App Store fee structure to appease regulators

Faced with intense scrutiny from the European Commission, Apple is abandoning its controversial per-install fee in the European Union. The company is replacing the Core Technology Fee with a flat 5% commission on digital goods sold through alternative app marketplaces or direct web distribution, marking a significant pivot in its DMA compliance strategy.

Apple simplifies EU App Store fee structure to appease regulators

The overhaul follows a €500 million fine levied against the tech giant last year for violating the Digital Markets Act. Critics previously dismissed Apple’s fee structure as malicious compliance, citing its convoluted tiers and acquisition charges. Under the revised terms, developers utilizing alternative payment processors will face a 20% commission, though this rate drops to 10% for participants in special programs like the App Store Small Business Program. Traditional in-app purchase fees are also falling to 26% from the long-standing 30% standard.

Beyond fee adjustments, Apple is lowering the barriers to entry for third-party app stores. Developers no longer need to prove a history of 1 million annual installs or two years of program membership to launch a marketplace. New financial stability benchmarks now include public company status or verified venture capital backing. Despite these concessions, developers remain locked into their chosen payment models for a 12-month period. Additional safeguards remain in place, specifically blocking external links in apps categorized for children and requiring parental consent for users under 18.

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