CUPERTINO, Calif. – June 30, 2025 – In a move sparking immediate backlash from developers and regulators, Apple today announced a new "Core Technology Commission" (CTC) – a fee structure applicable to purchases made outside its App Store ecosystem on iOS devices within the European Union. The policy, framed by Apple as necessary to support its platform investments, mandates fees even when developers bypass Apple's payment systems entirely.
The announcement comes as Apple continues its scramble to comply with the European Union's Digital Markets Act (DMA), which forced the tech giant to open its iOS platform to alternative app stores and direct payment processing for the first time earlier this year. While Apple initially introduced reduced commissions (17%/10% for digital goods) for developers using its payment system but distributing via alternative marketplaces, the new CTC targets a different scenario: purchases made directly on a developer's website, completely independent of any app store.
Here's how the Core Technology Commission works:
- Applies to: Digital goods and services purchased directly from a developer's website on an iPhone or iPad running iOS 17.4 or later within the EU.
- Fee Rate: Apple will charge a commission of 27% on the transaction value. For "qualifying developers" (largely interpreted as small businesses meeting specific criteria established last year), the rate drops to 12% after the first year.
- Authorization Requirement: Crucially, developers wishing to offer direct website purchases must still apply for an "entitlement" from Apple. This entitlement governs the technical mechanisms enabling the purchase link within their app.
- Reporting and Payment: Developers are responsible for reporting every applicable transaction to Apple and paying the commission quarterly. Apple will provide tools for reporting but emphasizes it will not be involved in processing the payments themselves.
- Link-Out Restrictions: Apps can only include a single link to the developer's purchase webpage, displayed in one specific location within the app. Apple will strictly control the design and presentation of this link.
Apple justified the CTC in its announcement: "The new Core Technology Commission helps support Apple's ongoing investments in the tools, technologies, and services that enable developers to build and share innovative apps with users securely across the iOS platform and the App Store – including through more than 250,000 APIs, cutting-edge frameworks, secure payment technology, and app review processes. Even when a developer chooses to use alternative payment processing and distribute outside the App Store, they continue to benefit from Apple's intellectual property, platform integrity, and security features."
Immediate Backlash and the Sweeney Response
Criticism erupted almost instantly, with many developers and industry watchdogs labeling the CTC as a blatant circumvention of the DMA's intent to foster genuine competition and reduce Apple's gatekeeper power. They argue the fee is prohibitively high, negating much of the potential savings from using alternative payment processors, and that the strict "link-out" rules severely limit how developers can inform users about alternative purchasing options.
Epic Games CEO Tim Sweeney, a long-standing and vocal critic of Apple's App Store policies whose lawsuit helped catalyze regulatory scrutiny, wasted no time condemning the move. He took to social media platform X shortly after the announcement:
https://x.com/TimSweeneyEpic/status/1938316411647988210
"Apple's new 'Core Technology Fee' on web transactions is a shocking move. 27% for payments they process? No. For intellectual property they license? No. This is a tax on the open web, imposed by a monopolist leveraging its control over iOS. It flies in the face of the DMA and common sense. Developers face an impossible choice: pay Apple's toll even for web sales, or stay trapped in their walled garden. The EU Commission must act decisively."
Context and Ongoing Tensions
The CTC is the latest chapter in Apple's complex and often contentious response to the DMA. The company has already faced significant pushback and fines related to its initial compliance measures:
- Alternative App Store Fees: Apple's initial structure for alternative app stores included a controversial "Core Technology Fee" (CTF) per app install after 1 million downloads. This fee remains separate from the newly announced CTC for web transactions.
- Scare Screens: Apple's use of warning "scare screens" when users attempted to download apps outside the App Store was heavily criticized by the EU and developers, leading Apple to modify them under regulatory pressure.
- Ongoing Investigations: The European Commission currently has multiple open investigations into Apple's DMA compliance, specifically examining the CTF, the rules for alternative app stores, and the steering rules that governed how developers could inform users about external purchases.
Industry Reaction and Regulatory Path Forward
Developer advocacy groups like the Coalition for App Fairness have condemned the new fee. "This is a tax on the internet itself within the EU," stated a spokesperson. "Apple is effectively saying that even if you completely avoid their infrastructure, you still owe them a quarter of your revenue simply because a user happens to own an iPhone. It's an unprecedented overreach."
Legal experts anticipate swift scrutiny from the European Commission. The Commission has repeatedly stated its intention to ensure gatekeepers like Apple comply with both the letter and the spirit of the DMA, focusing on enabling genuine contestability and fairness. The high commission rate, the mandatory entitlement, and the restrictive link-out provisions are all likely to be examined as potential violations.
Apple maintains its compliance stance. "We have designed our DMA compliance solutions carefully and thoughtfully, incorporating feedback from the European Commission and developers," the company stated. "The Core Technology Commission reflects the significant value iOS provides to developers even in transactions occurring outside our traditional systems."
As developers digest the news and regulators prepare their response, one thing is clear: the battle over the future of app distribution, payments, and platform power on iOS in Europe is far from over. The newly unveiled Core Technology Commission ensures the conflict has simply entered a new, potentially even more contentious phase.
Apple’s new Digital Markets Act malicious compliance scheme is blatantly unlawful in both Europe and the United States and makes a mockery of fair competition in digital markets. Apps with competing payments are not only taxed but commercially crippled in the App Store.…
— Tim Sweeney (@TimSweeneyEpic) June 26, 2025
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