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Apple Formalizes Two-Tier EU App Store Fees With External-Purchase Charges

The plan is now under European Commission review following Apple’s appeal of a €500 million antitrust fine.

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Overview

  • Apple set Store Services Tier 1 at a 5% commission for basic features and Tier 2 at 13%, reduced to 10% for Small Business Program participants, for expanded functionality.
  • A new 5% Core Technology Commission applies to any external purchase within apps and a 2% initial acquisition fee covers purchases by new users across both tiers.
  • Developers can switch tiers once per quarter and link to outside payment options but will lose certain App Store features if they opt for the lower-rate tier.
  • Apple has lodged an appeal against the European Commission’s €500 million fine for anti-steering practices even as it rolls out the revised fee structure.
  • Industry observers speculate that the EU’s tiered model could signal a forthcoming global cut of Apple’s standard commission from 30% to about 20%.