Apple New App Store Terms Get EU Support as Epic Games Pushes Back

Article Highlights

1. The European Commission has welcomed Apple’s revised App Store business terms for the European Union.
2. Apple is replacing the previous Core Technology Fee with a 5 percent Core Technology Commission for eligible digital transactions outside the App Store.
3. Alternative payment options can now be offered alongside Apple In-App Purchase under the new framework.
4. Epic Games says the new fees still undermine competition and has criticized the changes as junk fees.
5. Apple new App Store terms are scheduled to take effect on October 1, 2026, while the European Commission continues to monitor implementation.

Apple has made another major change to the way its App Store business works in the European Union, and this time the company has received a much more positive response from regulators. The European Commission has welcomed Apple’s new App Store terms after months of pressure over competition, alternative app distribution and payment rules.

The reaction is notable because Epic Games has taken the opposite position. The company behind Fortnite has described Apple’s new App Store terms as another example of fees that continue to restrict competition. That disagreement puts Apple, Epic and European regulators in an interesting position as the new system prepares to take effect on October 1, 2026.

The latest development matters well beyond the dispute between two technology companies. It could affect how developers distribute applications, how consumers pay for digital products, and how much money Apple can collect from transactions made outside its traditional App Store system.

Why Apple’s new App Store terms matter in Europe

Apple new App Store terms are the company’s latest attempt to bring its European business model into line with the Digital Markets Act. The DMA was designed to make digital markets more competitive by reducing the control that major technology platforms have over developers and consumers.

Apple has been designated as a gatekeeper under the DMA for services including iOS and the App Store. European rules require Apple to provide more opportunities for alternative app distribution and alternative payment systems. Developers in the EU can already use alternative app marketplaces and distribute certain applications through their websites.

The problem was that Apple’s earlier approach introduced a complicated collection of fees and conditions. The European Commission previously found Apple in breach of its anti-steering obligation and imposed a €500 million fine in April 2025. The Commission also raised concerns about Apple’s conditions for alternative app distribution. The new approach is clearly designed to simplify that system.

What Apple has changed

Under Apple new App Store terms, developers in the European Union will move toward a unified set of business terms. Apple is eliminating the previous Initial Acquisition Fee and Store Services Fee and replacing the Core Technology Fee with a Core Technology Commission.

For applications distributed outside the App Store through alternative marketplaces or the web, Apple will charge a 5 percent commission on eligible digital transactions. This represents a significant change from the previous per-installation Core Technology Fee.

Apple is also changing the economics of applications that remain on the App Store. Apps using Apple’s In-App Purchase system will generally face a 26 percent commission, although qualifying developers can receive a 15 percent rate.

Applications using alternative payment processing inside the App Store will generally pay a 20 percent commission, with qualifying developers paying 10 percent. Apps that direct users to external purchasing options will generally face a 15 percent commission, with a 10 percent rate available to certain qualifying developers.

The important point is that Apple’s new App Store terms do not simply reduce every fee. Instead, Apple has created a different financial structure depending on how developers distribute applications and process payments.

The European Commission is taking a positive view.

The European Commission’s response is perhaps the biggest surprise in this story.

According to a statement reported by Irish Independent and reproduced by multiple technology publications, the Commission said it welcomes Apple’s changes following close dialogue between Apple and the regulator. The Commission also said it will monitor Apple’s effective implementation of the new terms.

That last part is important. The Commission welcoming Apple new App Store terms does not mean regulators have decided that Apple can now do whatever it wants. The DMA remains in force, and the Commission has made clear that it will continue watching how the new system works in practice.

This is especially important because the Commission’s earlier investigations were not focused only on the names of Apple’s fees. Regulators were concerned about whether Apple’s rules actually give developers meaningful freedom to use alternative distribution and payment channels.

For that reason, Apple new App Store terms should be viewed as a regulatory compromise that still faces practical scrutiny rather than as the final chapter of the Apple and EU dispute.

Why Epic Games strongly disagrees

Epic Games has a very different interpretation. Epic has been one of Apple’s most vocal opponents over App Store rules, particularly the company’s restrictions on alternative payment systems and app distribution. The company has criticized Apple’s new App Store terms as another fee structure that continues to extract money from transactions even when Apple is not providing the traditional App Store distribution service.

Epic argues that the new charges do not go far enough to create genuine competition. It has described the fees as junk fees and argued that Apple’s approach does not satisfy the purpose of the Digital Markets Act.

Epic’s criticism is particularly relevant because its own Epic Games Store is operating as an alternative marketplace on Apple’s platforms in the EU.

Under Apple new App Store terms, Epic would face the 5 percent Core Technology Commission on eligible digital transactions made through its alternative store. That means the disagreement is not theoretical. The new financial structure directly affects Epic’s business model.

Apple and Epic are looking at the same rules differently.

The conflict becomes easier to understand when you look at incentives. Apple wants to retain an economic relationship with transactions occurring on its devices, even when developers use alternative distribution channels. It argues that it continues to provide technology, security, operating system infrastructure, and other services that support those transactions.

Epic takes the opposite view. If an application is distributed through a competing marketplace or downloaded from a developer’s website, Epic believes Apple should have a much weaker claim to transaction revenue.

That philosophical disagreement explains why Apple new App Store terms can appear reasonable to regulators while remaining unacceptable to Epic.

The European Commission is primarily concerned with whether the market is genuinely open and whether developers have meaningful choices. Epic is also concerned about those issues, but it has a direct commercial interest in reducing Apple’s control and fees.

The Core Technology Commission is the biggest change.

One of the most important elements of Apple new App Store terms is the replacement of the Core Technology Fee.

The previous system charged certain developers a fee based on installations after reaching a particular scale. Critics argued that such a structure could discourage large developers from choosing alternative distribution because Apple’s fees could accumulate even when Apple was not operating the alternative marketplace itself.

The new 5 percent Core Technology Commission is easier to understand. Instead of charging a per-installation amount, Apple will collect a percentage of eligible digital transactions from apps distributed outside the App Store.

From a developer perspective, that creates a more predictable relationship between Apple’s revenue and the developer’s own digital sales.

However, predictable does not necessarily mean inexpensive. A developer with significant digital sales could still pay substantial amounts to Apple even after moving away from the App Store. That is precisely why Epic remains dissatisfied with Apple’s new App Store terms.

Alternative payments become more practical.

Another major change is the ability to offer alternative payment options alongside Apple In-App Purchase. This could be important for developers who want to maintain Apple’s payment system while also giving customers another option. Apple says the new framework will allow alternative payment methods alongside Apple In-App Purchase, subject to the new requirements.

For consumers, the practical benefit could be greater choice. For developers, however, the decision will depend on the economics. A company must consider Apple’s commission, payment processing costs, customer support, fraud protection, refunds, and the technical work required to maintain multiple payment methods.

That means Apple new App Store terms give developers more options, but choosing the best option may still require careful financial analysis.

Alternative app stores get another opportunity.

The new framework also expands eligibility for developers that want to operate alternative app marketplaces or distribute applications through the web.

Apple says the eligibility requirements for alternative marketplaces and web distribution are being expanded. The company is also retaining its notarization process for applications distributed outside the traditional App Store. This could help smaller companies enter the European mobile distribution market.

The EU has already seen alternative marketplaces emerge, including the Epic Games Store and other competing platforms. The European Commission itself says alternative app stores such as the Epic Games Store, Aptoide, and AltStore have launched under the DMA framework.

The real test will be whether consumers actually use these alternatives. Giving developers legal access to alternative distribution is one thing. Convincing millions of iPhone owners to install and regularly use another marketplace is much harder.

What consumers should expect

For ordinary iPhone users, Apple new App Store terms may not immediately change the way they download applications. Most consumers will probably continue using Apple’s App Store because it remains familiar and convenient. Alternative stores will matter more if they offer exclusive games, lower prices, different subscription options, or applications unavailable through Apple’s marketplace.

The potential long-term benefit is competition. If competing marketplaces become credible alternatives, developers could gain more bargaining power. Consumers could potentially see different prices, payment options and application choices.

That is ultimately what the European Commission wants from the DMA. The Commission says the rules are intended to give developers more freedom while giving consumers access to alternative and potentially cheaper offers.

Does the Commission’s approval mean the dispute is over?

Not completely. The European Commission has welcomed Apple’s new App Store terms and indicated that the changes are a positive development. However, the Commission has also said it will monitor implementation.

That distinction matters.

Regulation of large technology platforms is rarely settled simply because a company publishes a new set of terms. Regulators need to see how those terms operate in the real market.

If developers discover that alternative distribution remains commercially unattractive, the Commission could face renewed pressure to intervene.

This is why Apple new App Store terms should be considered a significant development rather than a permanent conclusion to Apple’s European regulatory battle.

Why Epic’s rejection still matters

Epic’s opposition should not be dismissed simply because the European Commission has welcomed Apple’s changes. Epic has direct experience attempting to build an alternative mobile distribution business, and its criticism focuses on whether Apple’s new charges could weaken the economic case for competing with the App Store.

At the same time, Epic’s position should also be understood in context. Epic has been involved in a long-running dispute with Apple and has a strong commercial interest in reducing Apple’s fees and control.

The most useful way to judge Apple new App Store terms is therefore to look at what actually happens after October 1.

If alternative stores attract developers and users, Apple will face more meaningful competition. If alternative marketplaces remain niche despite the new rules, critics will have a stronger argument that the system is technically open but commercially restrictive.

What developers should do before October 1?

Developers operating in the European Union should not simply accept Apple’s new App Store terms without examining how the changes affect their business.

The first step is to calculate the total cost of each distribution option. That includes Apple’s commission, payment processing costs, and any operational expenses associated with external distribution.

The second step is to consider the customer experience. A cheaper payment method is not necessarily better if it creates friction during checkout.

The third step is to examine the rules around alternative marketplaces and web distribution. Developers should understand Apple’s eligibility requirements, security obligations, and the responsibilities associated with supporting customers outside the traditional App Store.

The new terms take effect on October 1, 2026, and developers can already review and agree to the updated Apple Developer Program License Agreement.

The bigger meaning for Apple’s App Store

The most interesting thing about Apple new App Store terms is not simply the percentage Apple will charge. The bigger story is that the European Union has forced a company that built one of the world’s most controlled mobile ecosystems to provide more choices to developers and consumers.

Apple has not abandoned its App Store business model, far from it. The company is creating a new structure that allows alternative distribution while preserving a significant economic role in those transactions. That is why the Commission’s response is important.

The European Commission appears willing to recognize meaningful progress while keeping its regulatory authority intact. Epic, meanwhile, believes the remaining fees undermine the very competition the DMA was supposed to create.

The market will test both positions. For Tech News readers, the most important date is October 1, when Apple’s new App Store terms begin taking effect. The months that follow should reveal whether Apple’s revised model genuinely makes alternative distribution more competitive or creates a cleaner version of the same economic relationship.

For now, Apple has won an important regulatory endorsement, but Epic’s objections ensure that the debate over Apple’s control of mobile software is far from finished.

Expert’s Opinion

Apple’s new App Store terms represent one of the company’s most significant changes to its European developer business since the Digital Markets Act began reshaping Apple’s mobile ecosystem.

The European Commission welcomes the changes and plans to monitor their implementation. Epic Games strongly disagrees and argues that the new fees continue to undermine competition.

The truth will probably become clearer through actual developer behavior. If companies begin moving more applications to alternative marketplaces, consumers start using competing stores and developers gain meaningful payment flexibility, the new framework could prove to be an important success for the DMA.

If developers continue relying almost entirely on Apple’s App Store because alternative channels remain too expensive or complicated, critics will have a much stronger case.

Either way, Apple new App Store terms mark a major shift in how the world’s most valuable technology companies can operate inside Europe’s digital economy.