Apple announced changes to its business terms for apps distributed in the European Union, following collaboration with the European Commission. The changes resolve disagreements over business terms and alternative distribution, and take effect October 1. Developers can sign the new terms immediately.

Under the updated structure, Apple is replacing its Core Technology Fee — a per-install charge — with a Core Technology Commission of 5% on digital transactions in apps distributed outside the App Store. The new terms also eliminate the initial acquisition fee and store services fee.

Revised commission rates will apply across the App Store and alternative distribution channels. For App Store apps using Apple In-App Purchase, the standard commission will be 26%, while most developers — including those in the Small Business Program, Mini Apps Partner Program, Video Partner Program, and those with auto-renewing subscriptions after the first year — will pay 15%.

For App Store apps using alternative payment processing, the standard rate will be 20%, with qualifying developers paying 10%. Apps that link out to complete purchases will face a 15% commission, reduced to 10% for eligible developers. Apps distributed via alternative marketplaces or the web will be subject to the 5% Core Technology Commission.

Apple said developers in the EU may now offer Apple In-App Purchase alongside alternative payment options, which was not previously permitted. Developers must select their payment configuration and maintain it for 12 months.

The updated terms include child safety measures for alternative payments. Apps in the Kids category will not be permitted to link to external websites for transactions. Users under 18 must pass a parental gate before completing purchases through alternative payment methods, and users under 13 cannot be directed to external websites for transactions.

Apple is also broadening eligibility for operating alternative app marketplaces or distributing apps via the web. New qualifying criteria include meeting a financial-stability threshold scored by Dun & Bradstreet, being publicly traded, having received venture funding, completing a financial audit, or being a government, educational, or nonprofit entity. Apple said all alternatively distributed apps must still pass its Notarization review process.