AI Weekly Malaysia

Apple announced a tiered EU App Store commission structure: 26% for purchases through Apple's App Store and payment system, 20% for apps using their own payment processing, 15% for apps linking out to a website, and 5% for apps distributed via third-party stores or the web. Apple says this resolves DMA-related regulatory disputes, though the 26% rate is notably higher than the previously standard 30% only when considering the new lower-cost alternatives.

Why: If you ship an iOS app to EU users, your distribution and payment routing choice now has a direct 21-percentage-point cost spread between Apple's full stack (26%) and third-party/web distribution (5%). Malaysian founders targeting EU markets should model whether the engineering effort of supporting alternative payment flows and third-party stores is worth the commission savings, especially for high-margin digital goods.

Apple introduced simplified EU App Store business terms on August 18, consolidating developers onto a single fee structure: 26% for Apple In-App Purchase (15% for qualifying devs/subscriptions after year one), 20% for alternative payment processors (10% qualifying), 15% for web link-outs (10% qualifying), and a 5% 'Core Technology Commission' for apps distributed via alternative marketplaces or the web. Epic Games called the fees 'junk' and said the plan fails to open the mobile ecosystem as required by the DMA, while consumer group BEUC cautioned that 'the devil is in the detail.'

Why: If you ship apps to EU users, these are the new commission tiers you need to model into your pricing — but the rates remain high enough that alternative distribution may not save much money, and the legal fight isn't over. For Malaysian builders not targeting the EU, this is a signal of where App Store economics may eventually shift globally if other regulators follow the DMA precedent, but there is nothing to change today.

Apple replaced its EU per-install Core Technology Fee with a flat 5% commission on digital goods sold through alternative app marketplaces or the web. In-app purchase fees dropped to 26% from 30%, and alternative payment processing costs 20% (10% for qualifying programs). Apple also made it easier for developers to open alternative app stores, following a €500M EU fine and criticism that prior terms were 'malicious compliance.'

Why: If you ship iOS apps to EU users, recalculate your distribution economics now: the old per-install Core Technology Fee is gone, replaced by a flat 5% on out-of-store transactions, which changes the break-even math for web or alternative marketplace distribution. Malaysian founders with EU revenue should compare the new 26% IAP rate and 20% alternative payment rate against their current setup before the next billing cycle.