Apple is substantially revising the commercial terms for apps distributed in the EU, abolishing the Core Technology Fee and moving to a new framework with a flat 5% CTC. The changes will take effect on 1 October, bringing the framework broadly in line with Japan's.
The EU announced that it will consolidate the fee structure for distributed apps, abolishing the CTF and replacing it with CTC. Developers can sign up for the new system from 1 October, with a flat 5% charge applying to digital transactions in the EU.
The fees are described as a three-tier structure, with the third tier, in particular, representing the 5% CTC charge for use of iOS. A 5% charge will also apply to distribution outside the App Store, and the same rate will apply when alternative payments are selected.
Under the new system, alternative payments and Apple payments can be used together. However, the payment method must remain fixed for 1 year, and the selected combination of in-app purchases, alternative payments and web links will continue to apply. Child protections will also be strengthened through age-based tiers, with controls established according to age requirements.
Given that Japan has a 5% CTC without the CTF, the framework is expected to become broadly similar between the EU and Japan. As Japan also moves ahead with support for alternative stores, developments in Europe could affect operations.