Apple announces a reduced commission structure for apps in the EU, including a 17% commission, or 10% for small developers, plus 3% if the app uses Apple's IAP
Apple's response to the E.U.'s Digital Markets Act has arrived. Juli Clover / MacRumors : Apple will allow third-party apps to use the iPhone's NFC chip in the EU, letting third-party payment services and banks offer their own tap-to-pay options Threads: Benjamin Mayo / @bzamayo : In Europe, Apple has introduced a new app commission structure that reduces rate to 10%/17% for apps in the App Store, plus 3% if apps use In-App Purchase, plus a per-install fee for ‘high volume’ apps. https://9to5mac.com/... X: David Barnard / @drbarnard : Only in the EU... for now... “Apps distributed through the App Store will pay a 17 percent commission (rather than 30 percent) on digital goods and services. This commission rate falls to 10 percent for any apps that currently qualify for Apple's reduced “small business” rate.”... David Barnard / @drbarnard : My initial take that this all seemed reasonable (after reading Apple's carefully worded statement) is eroding. My new hot take: Apple pulled an EU on the EU. The devil is in all the red tape. Any one rule seems reasonable, but combined the juice probably isn't worth the squeeze David Barnard / @drbarnard : Apple's calculator helps, but modeling what's best for a specific business is going to involve some assumptions that don't yet have any benchmarks for comparison. If I'm thinking about this correctly, the only clear winners here are developers who are in the small developer program and have fewer than 1M downloads per year. For everyone else, you have to make assumptions about payment fees, conversion rates, revenue per download figures, and on and on. Dare Obasanjo / @carnage4life : This will be more costly for developers than Apple charging 27% for IAP sales outside of the App Store. With that model, developers would likely end up breaking even after paying the 2.99% fee to Stripe/etc. With the post-DMA model, developer costs will increase in many cases. @dhh : From what I can tell, though, it looks like the path for @FortniteGame's return to European gamers has been paved, though? As long as it's distributed through the coming Steam or Microsoft or maybe even Epic game stores. Apple will only scan for malware, not biz model compliance. Matthew Ball / @ballmatthew : Huge new changes from Apple in EU after widespread criticism: • 17% commissions in Y1, 10% in Y2, plus €0.50 per install over 1MM, irrespective of app store used • 3% fee for using Apple IAP • Rival browser engines will be allowed • Still warns new options risky for users Lewis Crofts / @lewis_crofts : But developers can move to a new stucture if they want. - 30pc fee drops to 17pc (10pc for SMEs) - 3pc processing fee if you use apple payment service - new 0.50 euro fee for an app download if your app is mega-popular (over 1m) /3 Forums: MacRumors Forums : iOS 17.4 Introduces Alternative App Marketplaces With No Commission in EU
Context & Ripple Effects
This is Apple’s initial EU packaging of Digital Markets Act compliance: lower App Store commissions sit alongside support for alternative app stores with a per-install charge and continued platform review requirements for third-party distribution.
The model did not settle the dispute over payment freedom. Developer criticism characterized the new fees as anti-competitive, while later EU changes expanded links from apps to web purchasing options and ultimately replaced the Core Technology Fee with tiered commissions.
First-order effects
- EU developers face a 17% standard commission or 10% small-developer rate, with an additional 3% charge when they use Apple’s In-App Purchase system; high-volume distribution also carries a per-install fee.
- Banks and payment providers can build iPhone tap-to-pay services using NFC in the EU, while browser makers can use rival browser engines there.
Second-order effects
- Developers must compare Apple’s lower listed rates plus IAP and install charges against alternative distribution and payment paths, making monetization choices more dependent on app scale and transaction flow.
- Apple’s NFC opening gives payment providers a route to compete at the iPhone point of sale, while Apple retains economic and technical terms around App Store distribution.
Third-order effects
- The DMA is pushing App Store economics away from a single global commission toward region-specific access, payment, and distribution rules; later EU fee restructuring shows those terms remain subject to regulatory pressure.
- If regulators continue to assess whether these options are commercially usable, compliance will increasingly turn on the total cost and practicality of switching—not merely the availability of alternatives.
The trend: This is one step in regulated platform take-rate reform, where gatekeepers preserve platform controls while regulators demand more viable distribution, payment, and hardware-access choices.