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Apple has opened parts of iOS to alternative payments and app distribution in the European Union, but that has not ended the dispute. Developers still face a patchwork of commissions, payment costs, reporting duties, eligibility rules and user-facing warnings. In April 2025, the European Commission fined Apple €500 million over restrictions on developers’ ability to steer users to outside offers. In July 2026, the EU General Court upheld Apple’s designation as a gatekeeper for iOS and the App Store—a ruling that keeps the Digital Markets Act (DMA) in force, but does not decide whether every Apple fee is lawful.
What is the dispute about?
The DMA requires large platform operators designated as gatekeepers to let developers communicate alternative offers to users and steer them to ways of buying digital goods or services outside the gatekeeper’s service. It also requires Apple to permit alternative app marketplaces and, subject to safeguards, app distribution beyond its own App Store. The European Commission’s app-distribution guidance explains those rights.
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Apple made changes to its EU terms, but developers and regulators have questioned whether the fees, conditions and user experience leave those options commercially practical. The argument is not simply about whether an alternative is technically possible: it is about its total cost, how much friction users encounter, and how much responsibility the developer must take on.
What the DMA changed—and what it did not
The DMA did not abolish Apple’s App Store commissions or require every app to accept external payments. It created obligations around steering and distribution. Developers must be able to tell users about other offers, direct them toward those offers and facilitate transactions through alternative channels. Apple must also allow alternative marketplaces and certain forms of distribution outside the App Store, with safeguards.
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These are distinct routes, not one general “open App Store” option. A developer might keep an app in Apple’s store but use an external payment link; distribute an app through an alternative marketplace; or, where permitted, distribute it from a website. Each route has different technical, contractual and operational conditions.
Apple’s EU terms: separate the old fee from the 2026 transition
Apple’s earlier EU alternative terms combined lower App Store commissions with optional payment processing and a charge linked to installs. Apple’s current DMA developer documentation describes a transition beginning January 1, 2026, toward a Core Technology Commission (CTC) tied to sales of digital goods or services usable in apps on Apple platforms. The terms and their application depend on the business model and transaction type; developers should check the applicable terms rather than assume that an earlier rate or fee still applies unchanged.
| Term or charge | What it means | Important qualification |
|---|---|---|
| Earlier alternative-term commission | Apple set a reduced App Store commission of 10% or 17%. | The rate depended on the developer and transaction circumstances under Apple’s earlier EU terms. |
| Optional Apple payment processing | Apple offered payment processing for an additional 3%. | Developers could instead use a third-party provider or an external website; that choice brings its own costs and responsibilities. |
| Former Core Technology Fee (CTF) | €0.50 for each first annual install above one million for qualifying apps. | This was part of the earlier alternative terms, not a synonym for the later CTC. Apple estimated fewer than 1% of developers would owe the CTF. |
| Core Technology Commission (CTC) | Apple’s documentation describes a commission associated with sales of digital goods or services usable in apps on Apple platforms. | The transition is described as beginning January 1, 2026. Exact treatment depends on applicable EU business terms and transaction type; the documentation says the commission may be charged separately or identified as part of another commission. |
The figures in the first three rows describe Apple’s earlier alternative terms, not a universal schedule for every developer in 2026. Apple also says qualifying businesses earning less than €10 million globally and not previously reaching exceptional scale could receive a three-year free on-ramp under its earlier terms. The applicable eligibility rules matter.
Why developers say the changes can still be costly
Headline rates do not show total cost
A lower platform commission is not automatically a lower bill. An external payment route can add processor charges, billing and subscription software, fraud controls, chargebacks, tax and VAT administration, refunds, customer support and engineering work. A developer must compare these expenses with the charges and services attached to the relevant Apple terms.
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Install-based and transaction-based charges affect different businesses
The former CTF tied a charge to installs above a threshold, which could be a concern for high-install apps with modest revenue per user. Apple’s documentation describes the later CTC in relation to digital-goods sales instead. Developers should not treat the former install fee as the universal 2026 charge, nor assume that the CTC works identically for every app or distribution path.
External payments add operational work
Using an outside checkout can give a business more control over pricing and its customer relationship, but the developer may need to manage renewals, failed payments, refunds, tax obligations, account linking and support. Reporting obligations under Apple’s terms may also apply. The net outcome depends on the app’s geography, transaction mix, provider costs and ability to absorb that work.
Alternative distribution has eligibility and user-friction costs
Apple requires authorization for marketplaces and applies notarization and other safeguards to alternative distribution. Financial guarantees or liability exposure, marketplace operations, user installation steps and the need to attract both developers and users can make a marketplace costly to launch. Legal availability alone does not ensure that users will install from it or that it can compete at scale.
Choice can be complicated for smaller teams
A large publisher may have legal, engineering and payments staff to assess multiple routes. A small app business may find that Apple’s integrated billing, refunds, subscription tools and familiar checkout remain worth the commission, even if another payment route appears cheaper on paper. For some developers, the cost of running parallel systems may outweigh a potential saving.
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What Apple says in its defense
Apple says its EU rules aim to protect users from fraud, malware, privacy loss and poor-quality apps. Its safeguards include notarization, marketplace authorization, security checks and disclosures about alternative payments. Apple argues that these measures are necessary when apps or transactions move beyond its integrated system, and that its fees reflect services such as distribution, discovery, developer tools, security and payment infrastructure.
Apple also describes its alternative terms as voluntary: developers can remain on its existing App Store terms. That position has a practical limit, however. Whether an option is meaningfully voluntary depends on the economics and operational demands for a particular business. Security risks are real considerations, but their existence does not settle whether a particular safeguard is proportionate or whether a term makes competition impractical.
Why the Commission fined Apple €500 million
On April 23, 2025, the European Commission fined Apple €500 million for breaching the DMA’s anti-steering obligation under Article 5(4). The Commission said Apple’s rules constrained how developers could inform users about offers outside the App Store: steering was limited, had to use a link redirecting users to a webpage, and carried financial conditions for resulting transactions. It concluded that developers were not free to communicate and promote outside offers as the DMA requires, and ordered Apple to remove the restrictions. The legal decision is published on EUR-Lex.
The ruling is specific. It does not mean that every Apple fee has been found unlawful, that external payments are cost-free, or that every issue around alternative distribution has been resolved. The Commission’s separate 2025 material also described preliminary concerns that fees, strict eligibility requirements and burdensome installation procedures could discourage alternative app distribution; those concerns should not be confused with a final ruling on every term.
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What the July 2026 court ruling means
On July 8, 2026, the EU General Court rejected Apple’s challenge to its designation as a gatekeeper for the App Store and iOS. The court said Apple’s different App Stores could be treated as a single core platform service because they perform the same function: connecting app developers with end users to distribute software. The judgment preserves the legal foundation for applying the DMA to those services and for continued Commission enforcement. The court’s press release describes the decision.
The judgment did not rule that every Apple fee is illegal, approve Apple’s full compliance package, or create an unrestricted third-party app-store system. Further legal remedies may be possible, and disputes over particular compliance measures remain distinct from the gatekeeper-designation case.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How the economics differ by developer type
Small subscription app
A small subscription business should compare the applicable Apple commission and payment terms with outside processing, subscription management, tax administration, refunds and support. A qualifying business may have benefited from Apple’s stated three-year free on-ramp under earlier alternative terms, but eligibility and the 2026 transition need to be checked against the actual contract. If outside billing requires substantial engineering or support, keeping Apple’s integrated flow may still be more efficient.
Large free or freemium app
An app with many installs but little direct digital revenue may be especially sensitive to the difference between an install-linked charge and a sales-linked commission. The former CTF could matter to high-install apps above its threshold; Apple’s described CTC is tied to digital-goods sales. Advertising, external subscriptions and acquisition channels also affect the calculation, so an install count alone does not determine the outcome.
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Game with in-app purchases
Games often combine high install volume with digital purchases, making the precise terms and user conversion path important. External checkout may change payment and customer-support responsibilities, while alternative marketplaces need enough users and a compelling catalog to justify the extra distribution work. Fraud, refunds, parental controls and user trust also carry material costs.
Physical-goods commerce app
The dispute centers on digital goods and services. A retailer selling physical goods should not assume that the rules or fee analysis for games and software subscriptions apply to its transactions in the same way.
Marketplace operator or enterprise distributor
A marketplace must account for authorization, security, catalog and user acquisition, operating costs and any financial exposure under the applicable terms. Enterprise or internal app distribution may involve different Apple programs and contracts; consumer App Store rules should not be assumed to apply identically.
A practical way to compare distribution and payment options
- Identify the exact route. Separate sales through Apple’s in-app purchase system, external links from an App Store app, alternative payment inside an app, marketplace distribution and website distribution.
- Check the current contract. Confirm the business-term option, eligibility, applicable commission and any CTC or reporting requirements in Apple’s current EU documentation.
- Model total cost by revenue type. Include platform and payment-provider charges, subscription tools, fraud and chargebacks, tax and VAT, refunds, customer support and engineering.
- Account for conversion and reach. Estimate whether users will complete an external checkout or install from a marketplace, and what discovery or trust value may be lost.
- Review compliance responsibilities. Audit disclosures, transaction reporting, tax handling, consumer obligations and security processes before changing a payment or distribution path.
- Get specialist advice before changing terms. Contractual, tax and consumer-law consequences depend on the business and geography; legal or accounting advice may be appropriate.
What happens next?
The Commission continues to monitor Apple’s compliance and has raised concerns about aspects of alternative distribution. Apple’s terms may evolve, while developers and payment providers decide whether external payment and marketplace options are commercially worthwhile. The practical test is not merely whether an alternative exists, but whether a business can use it at a sustainable total cost and users will adopt it.
For readers evaluating claims that the DMA has already reduced app prices, Apple has published its own study on EU pricing. That is an Apple-published position, not independent proof of a market-wide result: Apple’s November 2025 study.
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