On June 26, 2025, Apple announced significant changes for developers distributing apps in the European Union (EU). These updates are a direct response to the Digital Markets Act (DMA), which compels large platforms (like Apple) to open up their ecosystems to competition.
If you are a developer, publisher, or business relying on App Store distribution, these changes will impact:
- How you can promote alternative purchase options
- What fees you owe Apple
- How you distribute apps (including direct downloads and alternative marketplaces)
This article explains every detail in plain language, including concrete examples for both games and apps so you can clearly understand the implications.
1. Why Is Apple Changing App Store Policies in the EU?
The European Commission has enforced the DMA to stop dominant companies from unfairly locking in users and developers. Apple has been required to:
- Allow developers to promote and link to payment options outside the App Store.
- Enable alternative app marketplaces.
- Provide fairer access to iOS installation and distribution.
These updates are part of a larger trend toward platform openness in Europe.
2. Communication and Promotion of Offers
What’s New:
Developers targeting EU storefronts can now communicate and promote offers for digital goods or services that are available outside the App Store. This includes:
- Promoting special pricing on your website.
- Linking to other apps or alternative marketplaces.
- Offering digital goods and services without using Apple’s in-app purchase (IAP) system.
How You Can Show These Offers:
- Outside the app: For example, emailing users a link to your web store.
- Inside the app: Using a web view or a native screen to show purchase options.
Examples of What’s Allowed:
- A subscription music app can display a banner:
“Save 20% by subscribing on our website.” - A game can offer a link:
“Get bonus coins at a discount on our online store.”
Important:
If you do this, Apple will charge you new fees (explained below).
3. New Business Terms and Fees
Previously, if you only used in-app purchases (IAP), Apple charged a commission of 15-30% depending on your program and revenue.
Under the new model, there are several components you must understand:
- Initial Acquisition Fee:
A fee for acquiring the customer via the App Store.
Think of this as Apple’s way of still earning revenue for being the discovery platform. - Store Services Fee:
Covers services Apple provides, such as refunds, user management, and fraud prevention. - Core Technology Commission (CTC):
A new fee that replaces the Core Technology Fee (CTF) starting January 1, 2026.
The CTC is charged on digital goods and services transactions, whether the purchase occurs in the App Store, your website, or an alternative marketplace.
Key Transition:
- Until January 1, 2026:
- If you adopt alternative terms, you pay the CTF.
- From January 1, 2026:
- Everyone moves to the CTC model.
- The CTF will be retired.
Apple has not yet disclosed the exact percentages or euro amounts for the CTC, but developers should expect that it will be less than the full 30% but more than zero.
4. User Experience Updates for Distribution
Apple is also updating how users can install apps:
- With iOS 18.6 and iPadOS 18.6, Apple will introduce a new user experience for installing alternative marketplaces or apps downloaded directly from a website.
- Later in 2025, Apple will provide an API that allows you to initiate the download of your alternative-distributed app from within your main app.
This means:
- You could have an app on the App Store.
- That app could let users download another app you distribute yourself (outside the App Store).
5. Example Scenarios
Let’s illustrate all of this with one game and one productivity app example, including before/after fee scenarios.
Example 1: A Game Selling In-App Currency
Game Name (for example):
Battle Legends EU
Old Scenario (Before June 26, 2025):
- 100% of purchases went through App Store IAP.
- Apple took 30% commission.
- You kept 70%.
Example:
- A user buys a €10 coin pack.
- Apple takes €3.
- You receive €7.
New Scenario (After June 26, 2025):
You decide to promote your own web store link inside your app:
- You show a banner: “Buy coins at 15% off on our site.”
The user taps the link and purchases on your website.
Fees:
- Apple charges:
- Initial Acquisition Fee (e.g., 10%).
- Store Services Fee (e.g., 3%).
- Core Technology Commission (from 2026) (e.g., 7%).
Illustrative calculation:
- Purchase amount: €10
- You discount: €8.50 price
- Apple’s combined fees: 20% of €8.50 = €1.70
- Your net revenue: €6.80
Comparison:
- Old model: €7 per sale.
- New model: €6.80 per sale (but you control the price and customer relationship).
Benefit:
- You can email, upsell, or cross-promote directly to that user.
Risk:
- If your discounting is too aggressive, you could end up with less net revenue.
Example 2: A Subscription Productivity App
App Name (for example):
FocusPro EU
Old Scenario (Before June 26, 2025):
- Monthly subscription: €5 via App Store IAP.
- Apple fee: 30% (or 15% for subscriptions older than a year).
Example:
- Apple takes €1.50.
- You receive €3.50.
New Scenario (After June 26, 2025):
You link to your website subscription checkout:
- €5 monthly subscription.
- Apple applies:
- Initial Acquisition Fee: 10%
- Store Services Fee: 3%
- From 2026: CTC, say 7%
Illustrative calculation:
- Purchase: €5
- Combined fees: 20% = €1
- You receive: €4
Comparison:
- Old model: €3.50 per subscription.
- New model: €4 per subscription (plus direct access to the user’s billing relationship).
Benefit:
- You own the payment method.
- Less long-term dependence on Apple.
Important Consideration:
- If users pay outside Apple, you must handle renewals, cancellations, refunds, and VAT yourself.
6. What Happens After January 1, 2026?
Apple will abolish the CTF and fully adopt the CTC model. This means:
- All apps using external purchases will pay the CTC.
- Even if you distribute via:
- App Store
- Web Distribution
- Alternative Marketplaces
Apple has confirmed additional details will be published later, especially the final percentage rates.
7. Music Streaming Apps
Music streaming services in the European Economic Area (EEA) can use a special entitlement to promote alternative offers, called the Music Streaming Services Entitlement (EEA).
This enables:
- External links
- In-app promotions
- Lower fees in some cases (pending Apple’s official published rates)
If you operate a music app, you must apply separately for this entitlement.
8. How Should You Prepare?
Here are the key steps developers should take:
- Review the new agreements carefully:
- Alternative Terms Addendum for Apps in the EU
- StoreKit External Purchase Link Entitlement Addendum
- Compare the numbers:
- Calculate whether sticking to in-app purchases or promoting external links will be more profitable.
- Evaluate user experience:
- Consider whether your audience will be comfortable buying on your website.
- Plan for compliance:
- Make sure your alternative checkout pages meet EU and Apple requirements.
- Implement proper VAT handling.
- Get ready for January 2026:
- Plan how you will transition to the CTC model.
9. Final Thoughts
These changes represent the biggest shift in Apple’s European App Store policy in over a decade. While they open new options for developers, they also introduce complexity and additional fees in different forms.
In summary:
- You have more freedom to communicate offers and promote external payment channels.
- Apple will still earn revenue through Initial Acquisition Fees, Store Services Fees, and the Core Technology Commission.
- Starting January 1, 2026, everyone will operate under a single CTC model.
10. Additional Resources
- Communication and Promotion of Offers on the App Store in the EU
- Alternative Terms Addendum for Apps in the EU
- StoreKit External Purchase Link Entitlement Addendum
If you are considering switching to alternative payments or distribution channels, Apple recommends booking a 30-minute session to ask questions and get clarifications.
Detailed Profit/Loss Comparison + Customer Communication Plans
Example 1: Battle Legends EU (Game)
Scenario Recap:
- You sell a €10 coin pack.
- You plan to offer users an external purchase link with a 15% discount (€8.50).
A. Old Model (In-App Purchase)
| Item | Value |
|---|---|
| User Price | €10 |
| Apple Commission (30%) | €3.00 |
| Net Revenue to Developer | €7.00 |
B. New Model (External Purchase Link)
Example Fee Breakdown:
| Fee Type | Percentage | Amount (€) |
|---|---|---|
| Initial Acquisition Fee | 10% | 0.85 |
| Store Services Fee | 3% | 0.255 |
| Core Technology Commission (2026) | 7% | 0.595 |
| Total Fees | 20% | 1.70 |
| Item | Value |
|---|---|
| User Price (discounted) | €8.50 |
| Apple Fees (20%) | €1.70 |
| Net Revenue to Developer | €6.80 |
Side-by-Side Comparison
| Scenario | Gross Sale | Net Revenue | Effective Commission Rate |
|---|---|---|---|
| Old Model (IAP) | €10 | €7.00 | 30% |
| New Model (External) | €8.50 | €6.80 | 20% |
Analysis:
- You earn €0.20 less per sale after discounting (even though Apple’s percentage is lower).
- But you gain direct customer relationships (emails, marketing consent).
C. Customer Communication Plan (Game)
Goal: Convert App Store buyers to web purchases without confusing them.
Steps:
- In-app messaging:
- Show a clear banner:
“Get 15% off coins on our secure website.” - Explain benefits (exclusive bonus items, better value).
- Show a clear banner:
- Email newsletter:
- “Your VIP reward: 15% discount on your next purchase.”
- Include FAQs about secure payments.
- Landing page:
- Branded, trustworthy payment page.
- Prominent support contact.
- Post-purchase onboarding:
- Instructions to redeem coins in-game.
- Confirmation email with receipt.
Compliance Checklist:
- Apple’s entitlement must be enabled.
- Transparent pricing.
- No misleading claims.
- VAT included if applicable.
Example 2: FocusPro EU (Productivity App)
Scenario Recap:
- Monthly subscription €5.
- Users billed via App Store or website.
A. Old Model (In-App Purchase)
| Item | Value |
|---|---|
| User Subscription | €5 |
| Apple Commission (30% year 1) | €1.50 |
| Net Revenue | €3.50 |
B. New Model (External Purchase Link)
Example Fee Breakdown:
| Fee Type | Percentage | Amount (€) |
|---|---|---|
| Initial Acquisition Fee | 10% | 0.50 |
| Store Services Fee | 3% | 0.15 |
| Core Technology Commission (2026) | 7% | 0.35 |
| Total Fees | 20% | 1.00 |
| Item | Value |
|---|---|
| User Subscription | €5 |
| Apple Fees (20%) | €1.00 |
| Net Revenue | €4.00 |
Side-by-Side Comparison
| Scenario | Gross Sale | Net Revenue | Effective Commission Rate |
|---|---|---|---|
| Old Model (IAP) | €5 | €3.50 | 30% |
| New Model (External) | €5 | €4.00 | 20% |
Analysis:
- You earn €0.50 more per subscription.
- You own the billing relationship.
- You must manage renewals and support.
C. Customer Communication Plan (Productivity App)
Goal: Transition existing subscribers smoothly and attract new users to external billing.
Steps:
- In-app messaging:
- Banner: “Manage your subscription securely on our website.”
- Explain benefits: improved account control, billing flexibility.
- Welcome email:
- Guide to setting up billing.
- Highlight privacy and security.
- Subscription landing page:
- Simple checkout experience.
- Contact info for billing support.
- Reminders:
- Automated renewal emails.
- Options to cancel or upgrade.
Compliance Checklist:
- Confirm user consent to switch billing.
- Clear cancellation policies.
- Compliance with EU consumer law.
Key Takeaways: Choosing Your Model
| Factor | Old Model (IAP) | New Model (External Link) |
|---|---|---|
| Apple’s Commission Rate | 15-30% | ~20% (estimated) |
| Who Controls Billing | Apple | You |
| Refunds & Renewals | Apple | You |
| Direct Customer Relationship | No | Yes |
| Setup Complexity | Low | High (requires extra systems) |
| Revenue Predictability | High | Medium (depends on conversion) |
How to Decide
When to Stay on IAP:
- You want simplicity and less admin work.
- You have low margins and can’t afford churn.
When to Use External Links:
- You want higher net revenue.
- You have strong customer support systems.
- You want to build a direct relationship.
Preparing for January 2026
Remember:
After January 1, 2026, the Core Technology Commission (CTC) applies universally to all digital sales—so even fully external purchases incur a fee. Apple will sunset the Core Technology Fee (CTF).
Action Plan:
- Budget for the CTC in 2026.
- Update your legal documents.
- Train your support teams for billing questions.
- Monitor Apple’s official updates on percentage rates.
Final Words
These policy changes are historic. For the first time, developers in the EU:
- Can fully promote and link to alternative payments.
- Can distribute apps outside the App Store.
- Must prepare to handle payments, taxes, and support independently.
Though Apple still imposes fees, you now have more control over your user relationships and business model.
