Apple Updates EU App Store Rules with Fee Changes
Apple recently updated the rules for its EU App Store, introducing a more intricate system of fees. These changes impact developers operating within the European Union and aim to comply with the Digital Markets Act (DMA).
Details of the New Fee Structure
The updated fee structure involves multiple components that developers need to understand:
- Core Technology Fee (CTF): A per-install fee for apps exceeding a certain threshold.
- Reduced Commission: A lower commission rate for developers who opt into the new terms.
- Payment Processing Fee: Charges for using Apple’s payment processing system.
Impact on Developers
Apple’s updated EU App Store rules introduce the Core Technology Commission (CTC), replacing the old Core Technology Fee (CTF) developer.apple.com Under the CTF, developers paid €0.50 for each “first annual install” over 1 million downloads wnhub.io. Soon, the CTC will add a 5% fee on external-purchase transactions, while standard in‑store service fees remain 5% or 13%, depending on the developer tier techcrunch.com
🚩 Why Developers Are Wary
Smaller Developers Pay More
Currently, small teams enjoy a free three‑year on-ramp (if revenue stays below €10M) webriq.com However, after that, every “first install” beyond 1 million incurs CTF/CTC fees. This could squeeze free and freemium app makers who depend on volume rather than purchases.
High‑Install Apps See Bigger Bills
Some fear that bot farms or heavy install spikes could inflate CTF costs dramatically tobin.yale.eduOne Reddit user warned:
“Imagine being the target of a bot farm … now it’s not just bad reviews … but the cost of all the installs.” reddit.com
Business Model Impact
Freemium and free app developers generally have low revenue per install, so volume-based fees hit them hardest medium.com. They’ll pay both existing App Store commissions and these new install‑based charges.
🧭 Pros & Cons: At a Glance
| ✅ Pros | ⚠️ Cons |
|---|---|
| Lower service fees (5%) for some tiers | CTF/CTC adds substantial costs for high-install apps |
| Encourages alternative payment models | Smaller devs may exceed install thresholds unintentionally |
| Aligns with EU’s Digital Markets Act | Complexity of tiered fees complicates budgeting |
Compliance with the Digital Markets Act (DMA)
Apple states these changes are necessary to comply with the EU’s DMA, which aims to promote competition and prevent gatekeeping by large tech companies. The DMA mandates that app stores allow alternative payment systems and permit developers to communicate directly with users.
Looking Ahead
Developers are now evaluating the impact of these changes on their businesses and considering whether to adopt the new terms. The situation continues to evolve as developers and regulators analyze the implications of Apple’s updated App Store rules in the EU.
