On August 18, 2026, Apple published new business terms covering app distribution and payments in the EU, consolidating several agreements into one. The biggest change shifts the burden on apps distributed through alternative app marketplaces and Web Distribution from a per-install charge to a percentage of eligible digital sales revenue.
As of August 19, the new terms had not yet taken effect. They will apply starting October 1, or on the date a developer signs Attachment 14, whichever is later. Apple states that, through close cooperation with the European Commission, differences of opinion regarding business terms and alternative distribution have been resolved. As of August 19, the European Commission had not published a formal decision regarding the Article 6(4) DMA alternative distribution proceeding.
Distribution channels, payment display requirements, and sales reporting are now unified under a single set of terms, requiring developers to simultaneously reconsider both fee calculations and operational compliance. The practical questions are how the fee basis changes under the new terms, and where Apple's approval and review processes still apply.
From a €0.50 CTF to a 5% CTC on Sales
Under the previous terms, the Core Technology Fee (CTF) applied to standard apps that accepted the Alternative Terms Addendum: it charged €0.50 per install for first annual installs exceeding 1 million within the trailing 12 months, combining App Store and alternative distribution. For alternative app marketplaces themselves, the fee applied starting from the first annual install. External purchase link fees were governed by a separate agreement: under the Alternative Terms Addendum, eligible offers incurred a 2% Initial Acquisition Fee plus a Store Services Fee (5% for Tier 1, 13% for Tier 2), while under the StoreKit External Purchase Link Entitlement Addendum, the same 2% and 5%/13% could be combined with an additional 5% CTC.
Under the unified terms taking effect in October, a 5% Core Technology Commission (CTC) applies to defined digital sales — including paid apps, digital goods and services, and auto-renewable subscriptions usable on Apple platforms — distributed via alternative marketplaces or Web Distribution. This also covers paid access to marketplaces or catalogs, as well as eligible web sales that begin within 7 days of a tap on an eligible external link. This is not 5% of all developers' revenue.
The difference becomes clear with a simple example. Suppose a standard app distributed through alternative channels achieves 2 million first annual installs but has no paid digital sales. Under the old CTF, the fee would apply to the 1 million installs exceeding the threshold, at €0.50 each, totaling €500,000. Under the new CTC, it would be €0. Conversely, if eligible digital sales total €10 million, the 5% commission also comes to €500,000. This is not a prediction but an illustrative calculation showing how the fee basis has shifted from install volume to monetization.
As a result, free apps that attract large numbers of downloads may see reduced costs. Conversely, developers growing paid apps or recurring revenue through alternative distribution will need to track sales figures, distribution channels, and the scope of eligible transactions on a monthly basis. Which approach is cheaper cannot be determined by install counts alone.
In-App Store Rates by Payment Method, and the 5% for Alternative Distribution
The new in-app rates within the App Store are determined by the payment path used. Apple's In-App Purchase (IAP) carries a 26% rate, with 15% applying to developers in designated programs and to eligible subscriptions more than one year past their start date. Alternative in-app payment processing carries a 20% rate, with a reduced 10% tier. Sales completed within 7 days via an eligible external link incur a 15% link-out fee, or 10% for the reduced tier. Separately, eligible digital sales from apps distributed via alternative marketplaces or Web Distribution incur a 5% CTC based on the distribution channel.
Apple will allow both IAP and alternative payment options to appear together within the same app on EU storefronts. However, IAP must be displayed alongside alternative payments and given at least equal prominence. Alternative payments require an entitlement, Apple's APIs, and a system disclosure sheet, though pricing and offerings may differ from IAP.
Once a developer selects a combination of payment methods, it remains fixed for 12 months across all EU storefronts. Sales via external links are not indefinitely subject to Apple's commission — the condition is a 7-day attribution window from the link tap. Apps in the Kids category cannot offer web purchases, and off-app offers to users under 13 are prohibited. Alternative payments require parental gates, and similar restrictions apply to off-app offers for users aged 13–17. Where a local digital consent age exceeds 13, that higher age applies instead.
The CTC is calculated on the consumer price excluding transaction taxes. Developers must report eligible transactions, including failed transactions, submitting monthly reports within 15 days after the end of each calendar month. Apple then invoices based on these reports, with payment due 30 days after the invoice date. Comparing rate tables alone overlooks this operational cost.
Alternative Marketplaces Gain Easier Entry, But Review Requirements Remain
Under the new terms, operating an alternative app marketplace or using Web Distribution no longer requires establishing a legal entity within the EU. More paths for demonstrating financial credibility have also been added. Developers can now qualify via a D&B rating of Low Risk or Below Average Risk, being a publicly traded company or part of one, receiving investment from firms on a designated list, or having received an unqualified audit opinion within the past 3 years. There is no minimum investment amount specified.
Other qualifying paths include: being a nonprofit, educational institution, or government entity that has received an Apple Developer Program fee waiver; obtaining a $1 million standby letter of credit from a financial institution rated at least BBB-; or having participated in the developer program for at least 2 years with more than 1 million worldwide first annual installs in the prior year. The letter of credit must be maintained for at least 6 months after issuance. Previously, the main paths were maintaining an ongoing €1 million letter of credit from an A-rated financial institution, or having at least 2 years of program participation combined with more than 1 million first annual installs in the EU in the prior year.
Small marketplace operators are exempt if their worldwide revenue over the trailing 12 months is under €10 million and their marketplace app's own lifetime download or subscription revenue in the EU is under €1 million. This exemption applies only to the marketplace app's own paid download or access fees — it does not exempt eligible digital sales from each app distributed through that marketplace.
Expanding entry paths does not mean distribution is automatically approved. Alternative distribution still requires Apple's approval and Notarization. Notarization is a separate review from full App Review, focused on security, privacy, and functionality; it allows Apple to sign and encrypt alternatively distributed apps and block known malware. Apple also outlined plans for fall 2026, including an API for initiating downloads from within apps, updates to the alternative installation screen, and extending to 90 days the period during which EU users traveling outside the EU can install apps from outside the region.
Two DMA Issues, and What Remains to Be Confirmed by October 1
Treating this change as resolving a single DMA matter would obscure important procedural distinctions. On April 23, 2025, the European Commission fined Apple €500 million for violating Article 5(4) DMA obligations regarding steering users toward external offers, and ordered Apple to remove technical and commercial restrictions. This decision concerned steering — directing users toward transactions outside the App Store — as a separate matter.
On the same day, the Commission also issued a preliminary finding regarding Article 6(4) DMA on alternative app distribution, stating that Apple's contract terms hindered effective alternative distribution. The issues cited included the CTF, strict eligibility requirements, and a complicated and confusing installation flow. On June 26, 2025, Apple had announced plans for a single EU business model and a transition from CTF to CTC by January 1, 2026 — but the effective date announced now comes nine months later than that.
Apple states that the differences of opinion have been resolved. As of August 19, the European Commission had not published a formal decision regarding the Article 6(4) DMA alternative distribution proceeding. The new terms take effect October 1 or upon a developer's signature, and how payments actually change for developers will become clear based on how many developers accept the unified terms, the entry of alternative marketplaces, and the practical realities of reporting eligible sales.