Apple has announced comprehensive changes to its business terms for applications distributed in the European Union, with the new rules taking effect on October 1. The tech giant is adjusting commission rates across the App Store, alternative app payments, and alternatively distributed apps to align with regulatory requirements.

Under the revised structure, apps on the App Store that utilize Apple’s in-app purchase system will be subject to a 26% commission rate. This represents a significant increase for developers relying on Apple's native payment infrastructure within the region.

Revised Commission Structure

The announcement details a tiered approach to commissions based on how transactions are processed:

• In-App Purchases: Apps using Apple’s in-app purchase system will pay a 26% commission.
• External Links: Apps that direct users to external websites or platforms to finalize purchases will pay a 15% commission.
• Core Technology Fee: A 5% core technology fee will replace the previous core technology fee structure for digital transactions occurring outside the App Store.

This reduction from the standard global commission structure applies specifically when the transaction occurs outside the Apple ecosystem. The change is part of a broader shift in how the company manages app distribution and payments within the EU regulatory framework.

Expanded Distribution Options

The announcement also widens the criteria for who can operate alternative app marketplaces or distribute apps via the web within the European Union. This expansion aims to provide more avenues for developers to reach users beyond the traditional App Store interface.

Payment Flexibility

Developers will now have the option to offer Apple’s in-app purchase system alongside alternative payment methods. Previously, this combination was not permitted in the EU. This update allows for greater flexibility in how transactions are processed, giving developers more control over their payment infrastructure while still offering Apple’s native solution as an option.

What the Numbers Show

The 15% commission rate for external links and the 5% core technology fee represent specific carve-outs in Apple’s pricing model for the EU region. By tying lower rates to the act of linking out or transacting outside the store, the structure incentivizes transactions that occur outside the closed loop of the App Store. Conversely, the 26% rate for in-app purchases highlights the premium cost of remaining within Apple’s native payment ecosystem.

The US government has urged Apple not to purchase memory chips from Chinese manufacturers, the Wall Street Journal reported on August 14, citing an exclusive account of the development.

US pressure on Apple's chip supply chain

According to the Wall Street Journal report, US authorities communicated directly with Apple, pressing the company to refrain from sourcing memory chips from China. The report did not specify which Chinese chip suppliers were involved or the precise nature of the government's communication with Apple.

The development reflects broader US policy efforts to reduce American technology companies' dependence on Chinese semiconductor supply chains. Memory chips are a critical component in consumer electronics, including Apple's range of devices.