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Apple's New EU App Store Terms Are Live: What Indie Devs Should Decide Before the 12-Month Lock

Muhammad Tayyab

October 5, 2026·20 min read

Bird's-eye view of a legislative chamber in session — photo by Marco Oriolesi via Unsplash

Apple's unified EU terms took effect Oct 1, 2026. Real fee math for In-App Purchase vs alternative payments vs web links, the 12-month lock-in trap, and a decision checklist.

On October 1, 2026, Apple's new business terms for apps in the European Union took effect. Apple announced them on August 18 after what it called "close collaboration" with the European Commission. It says they settle its long fight with the Commission over EU business terms and alternative distribution (Apple Newsroom).

For indie developers, the headlines boil down to three things:

You can now offer Apple In-App Purchase alongside your own payment options in EU storefronts. Before, it was one or the other.
There is one rate card for everyone, and the old per-install Core Technology Fee is gone.
Whatever payment setup you choose, you must keep it for 12 months.

That last point is the one that can hurt you. This guide covers what changed, what it actually costs (with worked examples), how the lock-in works according to the contract text, and how to decide between staying IAP-only, adding web or alternative payments, or waiting.

Not legal or tax advice. This is a developer's plain-English reading of Apple's public pages and the license agreement. Check your own situation with Apple or a qualified advisor before you change anything.

What actually changed on October 1

Apple now has a single set of EU terms (Attachment 14 of the Apple Developer Program License Agreement). It replaces the old "Alternative Terms Addendum" and the EU external-link addendum (Apple Developer). Here's the rate card for App Store apps:

Apple In-App Purchase: 26% standard. 15% if you're in the App Store Small Business Program (or the Mini Apps or Video Partner programs), and for auto-renewing subscriptions after their first year.
Alternative payment processing inside your app (your own payment provider): 20% standard, 10% for program members and for subscriptions after their first year.
Linking out to buy on the web (Apple calls these "out-of-app offers" with an actionable link): 15% standard, 10% for program members and for subscriptions after their first year. It applies to purchases started within 7 days of the link tap.

And for apps distributed outside the App Store:

Alternative app marketplaces or web distribution: a 5% Core Technology Commission on digital sales.

Apple also dropped the initial acquisition fee and the old store services fee, and replaced the Core Technology Fee. That was a per-install charge The Verge describes as €0.50 for each first annual install over 1 million (The Verge).

For comparison, Apple's traditional In-App Purchase rate was 30%, so 26% is a cut for developers who don't qualify for a program rate (TechCrunch). If you're in the Small Business Program, your In-App Purchase rate stays at 15%.

The "5%" headline is not your App Store rate

A lot of the coverage led with "Apple replaces the Core Technology Fee with a 5% commission." That's true, but the 5% only applies to apps distributed outside the App Store, meaning alternative marketplaces or Apple-authorized web distribution. If your app is on the App Store, your rates are 26/20/15 (or 15/10/10 for most indies). The 5% does not apply to web sales you reach from an App Store app.

Most solo developers also can't use web distribution. The contract requires you to be enrolled as an organization and to meet one eligibility test. Examples are a qualifying Dun & Bradstreet risk score, a recent financial audit, a USD 1M standby letter of credit, qualifying VC funding, or more than 1 million first annual installs (Attachment 14, §2.1). The rest of this post covers App Store apps.

The 12-month lock: how it actually works

Apple's summary is short: pick In-App Purchase, alternative processing, linking out, or a combination, and "maintain that choice across all EU storefronts for 12 months" (Apple Developer).

The contract, Attachment 14 §3.1(D), adds detail that matters for planning. Here's how I read it:

Existing apps: "any changes You make to Your elections" stay in effect for 12 months. So the clock starts when you change your setup, for example by adding a web link.
New apps: "Your election when the Application is first distributed" stays in effect for 12 months. If you launch a new app IAP-only, you may be committing to IAP-only in the EU for its first year.
Every change starts a new 12 months. "Subsequent elections also remain in effect for twelve (12) months."
It's per app, across every EU storefront. You can't test web checkout in one country only.
Link-free mentions sit outside the lock. Telling users about an offer elsewhere without a tappable or scannable link "does not affect" your election, and you can do it "at any time." You still need Apple's entitlement for it, and the other rules still apply.

Flag: That's my literal reading of the text. Apple's pages don't directly say whether an existing IAP-only app is locked from the day you sign. Apple offers a free 30-minute online appointment for questions about these EU changes (Apple Developer News). Book one before you launch a new app or change payment options.

Why the lock is the main trap

Picture the common failure. You add a web checkout because the per-sale margin looks better. Then EU conversion drops, support tickets about refunds pile up, and your VAT bookkeeping turns into a second job. Under these terms, you can't simply switch it off next month. You've committed to the combination for a year, across every EU storefront.

The reverse also hurts. Launch a new app with no alternative options, and you may not be able to add them for 12 months, even if the math later says you should.

So treat this as a one-year experiment with no early exit. Decide on numbers, not on headlines.

The real fee math (worked examples)

All prices below are examples, not real app prices. Assumptions:

An annual subscription where the customer pays €48.40, including an illustrative 21% VAT, which leaves €40.00 net. Apple's commission on alternative payments and link-outs is charged on the amount after the taxes you collect (Attachment 14 §3.5).
Your own checkout runs on Stripe. Its Ireland pricing is 1.5% + €0.25 for standard EEA cards (Stripe pricing), plus 0.7% for Stripe Billing subscriptions (Stripe Billing). That's about €1.32 per charge.
As an alternative, a merchant of record like Paddle charges 5% + 50¢ per transaction (Paddle pricing), which is about €2.92 here. A merchant of record also takes on the sales-tax work.
The math ignores currency conversion, chargebacks, tax tooling, refunds, and your support time. All of those make your own checkout look worse than shown.

Example 1: You're in the Small Business Program (most indies)

What you keep per €40 net annual subscription:

Apple In-App Purchase (15%): Apple takes €6.00, so you keep €34.00. Apple handles VAT, refunds, and billing support.
Your own in-app processing via Stripe (10%): €40.00 − €4.00 − €1.32 = €34.68.
Web link-out via Stripe (10%): also €34.68.
Web link-out via Paddle (10%): €40.00 − €4.00 − €2.92 = €33.08. That's less than In-App Purchase.

The gain is about €0.68 per subscriber per year, roughly 2% of net revenue. If the extra steps cost you even 2% of buyers (the web path has to keep about 98% of your In-App Purchase conversions), you break even or lose money. That's before tax compliance and refund handling.

Year-2 renewals look the same for you. Renewals after the first year already get the reduced rates (15% In-App Purchase, 10% for the alternatives), so the gap stays about the same.

Example 2: You're above the Small Business Program threshold (first-year subscriptions)

Same €40 net subscription:

Apple In-App Purchase (26%): Apple takes €10.40, so you keep €29.60.
Your own in-app processing via Stripe (20%): €40.00 − €8.00 − €1.32 = €30.68.
Web link-out via Stripe (15%): €40.00 − €6.00 − €1.32 = €32.68.
Web link-out via Paddle (15%): €31.08.

The link-out keeps about €3.08 more per first-year subscriber, around 10%. It still comes out ahead as long as it keeps about 91% of your In-App Purchase conversions. Alternative processing inside the app needs about 96.5%. For bigger developers, linking out is the option that's actually worth testing.

Example 3: A small one-time purchase (Small Business Program)

Take a €4.00 net unlock, which the customer pays €4.84 for. Stripe takes about €0.32, with no Billing fee for one-off payments.

Apple In-App Purchase (15%): you keep €3.40.
Your own processing or link-out via Stripe (10%): €4.00 − €0.40 − €0.32 = €3.28.

In-App Purchase wins outright. Card processing has a fixed €0.25 part, so it eats small purchases. For low-priced one-time purchases, alternative payments rarely pay off for small developers.

Two contract details that change the math

Link-out renewals keep paying Apple. For subscriptions sold through a link-out, "subsequent auto-renewals are all subject to commission." That's 15% in the first year, then 10% (Attachment 14 §3.5(C)). It isn't a one-time fee on the first web purchase.
"Promoted" is broad. If your link mentions the app, Apple counts all digital goods usable in that app as promoted. Any of them bought within 7 days of the tap owes the link-out commission.

How the Small Business Program fits in

You still qualify based on USD 1 million in proceeds in the prior calendar year, counting associated developer accounts (Small Business Program).
In the EU, program members get 15% on In-App Purchase and 10% on alternative processing and link-outs.
Money you earn outside In-App Purchase counts toward that USD 1M. Under Attachment 14, proceeds from alternative payments and link-outs count toward program eligibility. Moving revenue to the web doesn't keep you under the threshold.
After the first year, auto-renewing subscriptions get the reduced rates (15% / 10%) whether or not you're in the program.

What you sign up for when you leave In-App Purchase

The commission is only part of the cost. Under these terms you also take on:

Taxes. You collect and remit VAT on sales you process yourself, unless you use a merchant of record.
Monthly reporting to Apple. You report all alternative-payment transactions, including refunds, renewals, and attempts that didn't result in a sale, within 15 days of month-end. Apple invoices you, and you have 30 days to pay. Late payments carry interest of up to 1% per month. Apple can also take what you owe out of your App Store payouts, including those from other markets (Payment options in the EU; Attachment 14 §5.2).
Audits. You keep records for three years, and Apple can audit them (§5.4).
Customer support. You handle refunds, disputes, and subscription management. Apple's purchase history, Report a Problem, and Family Sharing won't show these purchases.
Payment provider requirements. Your provider must be PCI Level 1 compliant and offer a dispute and refund process.
Design rules. If you offer In-App Purchase alongside other options, it must appear at the same time and at least as prominently, using Apple's artwork on a black or white button. Your flow can't discourage In-App Purchase. Your App Store product page can't mention the alternatives, and Apple adds its own "External Purchases" disclosures to your listing.
Link behavior. Link-outs must open in the browser, not in a web view inside your app.
Parental gates. There are no link-outs in Kids category apps or for users under 13. Users aged 13–17 (or the local consent age) need a parental gate for link-outs, and anyone under 18 needs one for alternative processing.
Minimum OS. The entitlement works on EU storefronts on iOS/iPadOS 26.2 or later. Contact Apple about older versions.
Engineering. You'll need the StoreKit External Purchases or Offers entitlement, the ExternalPurchaseCustomLink API, and Apple's disclosure sheet before each purchase flow.

Not based in the EU? This still applies to you

The rules follow the storefront, not where you're based. If your app is sold in EU App Store storefronts, these terms cover those sales. That's true whether you're in Austin, London, or Lisbon.
Coverage means the 27 EU countries. Apple's entitlement country list is the EU-27. Iceland and Norway are included only for music streaming apps. Other storefronts, such as the US, UK, and Switzerland, are covered by their own rules, not Attachment 14.
The 12-month choice covers all EU storefronts at once. You can't run web checkout in Germany only.
The Account Holder has to accept the updated agreement. Attachment 14 applies from October 1, 2026, or the date you sign, whichever is later. Until you sign, the new rates (including the 26% In-App Purchase rate) don't apply to your account.
No EU company needed. Apple says marketplace operators and web distributors no longer need an EU legal entity. For most indies, the App Store options above are the practical ones.

Your three paths

Path A: Stay In-App Purchase only (the default for most indies)

Best for: Small Business Program members, low-priced one-time purchases, apps with a lot of teen users, and anyone without a tax and refund setup.

On the examples above, the margin gain from leaving In-App Purchase is about 2% for program members. That's easily wiped out by a small drop in conversion. In-App Purchase also gets you Apple's checkout, tax handling, and refunds. If you don't want to promote anything outside the app, you don't need any new entitlement.

Path B: Add a web link-out or alternative payments next to In-App Purchase

Best for: Developers above the Small Business Program threshold selling first-year subscriptions, and teams that already run web billing for another platform.

The real gain is the link-out (15% vs 26% in year one). The new part is that you can keep In-App Purchase on the same screen, so users who prefer Apple's checkout don't drop off. Budget for real build and testing work, a tax plan, and a full year of maintenance before you can change course.

Path C: Wait (and gather data)

Best for: Existing apps that are unsure. Read literally, the contract starts the 12-month clock when you change your setup, so waiting costs little. Use the time to:

Measure what share of your revenue comes from EU storefronts.
Try a link-free mention of a web offer, which sits outside the lock under §3.1(D). Confirm the entitlement and disclosure requirements first.
Price out VAT and refund handling with your payment provider.

The exception is new apps. Your setup at first distribution is locked for 12 months, so decide before launch, not after.

Decision checklist

Are you in the Small Business Program, and will you stay under USD 1M? Remember that web revenue counts toward the threshold.
What share of your revenue comes from EU storefronts? If it's small, the potential upside is small too.
Do you sell subscriptions or small one-time purchases? Small one-time purchases favor In-App Purchase.
Run the break-even numbers. With your real prices and payment-provider fees, how much conversion can you lose and still come out ahead?
Who handles VAT, refunds, and chargebacks? You, or a merchant of record that charges more?
Can you file a monthly transaction report to Apple within 15 days, every month, for a year?
Do many of your users skew under 18? Parental gates add friction, and under-13s can't use link-outs at all.
Is this a new app? Your setup at launch is locked for 12 months.
Has your Account Holder accepted the updated agreement? The new rates start only after signing.
Have you confirmed your reading of the 12-month lock? Apple offers a 30-minute appointment.
Have you written down a review date 12 months after any change, with the metric that decides the next step?

Soft close

Apple's new EU terms are simpler than the last version. But "simpler" doesn't mean switching away from In-App Purchase pays off. For most small developers, staying with In-App Purchase or waiting and gathering data is the sensible choice this year. Developers above the threshold with real subscription volume have a case for a link-out that runs alongside In-App Purchase, if they can carry it for a full year.

Take a consumer subscription app like DripScore. The questions are the ones in the checklist above: what share of revenue comes from the EU, whether the margin gain covers the work, and whether you can commit for 12 months. Answer those before you touch the entitlement.

If you want a second pair of eyes on an EU payment setup, StoreKit integration, or a paywall that runs In-App Purchase alongside a web offer, say hello via /#contact.

About the author

Muhammad Tayyab is a full-stack and mobile developer. He builds DripScore (AI outfit rating) under dawnapps.co, also on the App Store. Find him on GitHub, LinkedIn, and X, or say hello at /#contact.

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