Apple Reaches App Distribution Agreement With EU and It’s Surprisingly Not Horrific
Last year, Apple submitted revised terms for app distribution in the EU under the DMA. The Above Avalon article from July 3rd, 2025 discussed the changes that weren’t the easiest to track and understand. The two big takeaways from those revised terms were:
-
For most developers (i.e. 95% of developers with apps in the App Store), Apple’s Small Business Program and in-app purchase (IAP) remained the way to go. For these developers, 15% revenue share continued to be an attractive percentage for what is received in return.
-
For the largest ~5% of iOS developers with apps in the EU App Store, regardless of the path taken, Apple remained focused on being compensated for its IP (as it should be). Apple’s revisions supported the view that management was willing to give up some revenue share by allowing developers to opt out of some App Store services.
Shortly after Apple announced its revised terms, U.S. press indicated that the European Commission was leaning toward approving the terms partly to please the Trump administration. The Commission did say at the time that it was seeking feedback from developers as to what they thought of Apple’s revised terms. As it turned out, the Commission approval that was apparently coming never occurred, which led to additional back and forth between the EU and Apple. We now have Apple taking another crack at revised terms for app distribution in the EU under the DMA, and it sounds like the Commission is OK with the terms.
In a press release issued on August 18th, here’s Apple:
“Apple today announced changes to its business terms for apps in the European Union, following close collaboration with the European Commission. These changes resolve Apple’s disagreements with the Commission over business terms and alternative distribution. They also reduce complexity by moving every developer that distributes apps in the EU to a single set of business terms. Developers can sign the new terms today, and changes will go into effect on October 1.
Under this new model, Apple will charge a commission on the sale of digital goods and services. The Core Technology Fee, a per-install fee for developers that achieve extraordinary scale, will be replaced by the Core Technology Commission, a simple 5 percent commission on digital transactions in apps distributed outside the App Store. The new terms also eliminate the initial acquisition fee and store services fee.
In addition, Apple is adjusting commission rates across the App Store, alternative app payments, and alternatively distributed apps. Each of these commissions reflects the many ways Apple creates value for developers’ apps, whether they use the App Store and/or Apple In-App Purchase.”
The dramatic shift from what had been a confusing web of terms and conditions with entirely different tracks and scenarios for developers to come from to universal conditions that can be captured in a few bullet points will be welcomed by all parties involved, including Apple.
Apple’s revised revenue share terms for app distribution in the EU are as follows:
-
App Store (with IAP): 26% (15% for most developers who are in either the Small Business Program, Video Partner Program, or the Mini Apps Partner Program).
-
App Store (with alternative in-app payments): 20% (10% for developers in the discounted programs).
-
App Store (with link-outs): 15% (10% for developers in the discounted programs).
-
Alternative App Marketplaces or web distribution: a 5% “Core Technology Commission” applied to digital goods transactions.
The 15% / 10% percentages for transactions that occur outside apps via link-outs are equal to Apple’s proposed percentages to the Court regarding transactions that occur outside apps via link-outs in the U.S. App Store. The 10% for small business developers is better than the 5% proposed for the U.S.
My initial impression of these revised terms is that
This article is available exclusively to Above Avalon members. Become a member using the payment forms ($20/month or $200/year) below. Members can continue reading this article here.
An audio version of this article is available to members who have the Podcasts add-on (+$10/month or +$100/year) attached to their Above Avalon membership.
