Apple Introduces New Tier System for Store Services Fee in Response to EU Regulations

Apple has introduced new App Store changes in the EU in an attempt to avoid being further penalized under the European Union’s Digital Markets Act (DMA). On Thursday, the company announced a new tier system for its Store Services fee that applies to purchases made outside apps. This new structure will only grant developers access to the full set of App Store features if they agree to pay Apple a larger commission.

Details of the New Tier System

The first tier, referred to as the Tier 1 of the Store Services fee, will provide developers with only basic App Store features for a reduced commission of 5 percent on in-app purchases. This tier includes essential services such as app reviews, privacy nutrition labels, and access to Apple Support. However, it lacks many of the advanced features that developers currently benefit from on the App Store, including automatic app updates, automatic app downloads, and various promotional tools.

In contrast, for full access to the App Store features, developers will need to opt for Tier 2 of the Store Services fee, which comes with a 13 percent commission. Apps on the App Store will be categorized under Tier 2 by default, although developers will have the option to downgrade their apps to Tier 1 if they choose.

Introduction of New Fees

Apple is also introducing a new fee structure: the Core Technology Commission. Under this update, Apple will impose a 5 percent commission on outside purchases made within apps that are distributed on the App Store. Developers who have previously agreed to Apple’s alternate business terms will continue to pay the Core Technology Fee (CTF), which is set at €0.50 per download for each annual install exceeding 1 million.

Future Changes and Compliance

Looking ahead, Apple has announced plans to transition to a “single business model” for developers in the EU starting January 1st, 2026. This transition will involve converting the Core Technology Fee into a 5 percent Core Technology Commission on digital goods and services sold on the App Store and alternative marketplaces.

These changes are a direct response to the €500 million (about $570 million) penalty the EU served Apple on April 23rd, following a ruling that determined its App Store “anti-steering” practices—restrictions on how developers can direct users to make external purchases—were in violation of DMA regulations. If Apple fails to pay the imposed $570 million fine by next month, it will incur interest payments on this amount. Additionally, the EU has issued preliminary findings initiated a separate DMA investigation into Apple’s Core Technology Fee and other limitations affecting alternative iOS app stores, concluding that Apple did not adequately demonstrate that these practices were “necessary and proportionate.”

Apple’s Response and Appeal

In light of these developments, Apple has expressed its intention to appeal the penalty. The company stated, “The European Commission is requiring Apple to make a series of additional changes to the App Store,” and added, “We disagree with this outcome and plan to appeal.” Apple has not yet provided a response to The Verge’s request for further comment.

Next Steps for the EU Commission

The EU Commission will now evaluate the changes proposed by Apple before making a final decision regarding any additional non-compliance fines. The outcome of this assessment could have significant implications for Apple and its operations within the European market.