App Store EU Fees 2026: CTC vs CTF, Real Math

Let’s get straight to it: the primary variable that will shape your margin on iOS in Europe this year is the App Store EU fees 2026 package—specifically the Core Technology Commission (CTC) replacing the Core Technology Fee (CTF). If you communicate and promote offers for digital goods or services in your EU app (including external links or web views), your pricing and product roadmap need a recalibration now. (developer.apple.com)

What changed on January 1, 2026?

Apple is moving EU developers to a single business model where the CTC becomes the default abstraction for Apple’s take on digital goods. In Apple’s own developer guidance, the CTC is a 5% commission that applies to eligible sales associated with apps that communicate and promote offers usable in an app on Apple’s platforms. Apple has stated it will transition from the CTF to the CTC by January 1, 2026. (developer.apple.com)

That change sits alongside Apple’s two Store Services tiers and an initial acquisition fee. Tier 1 carries a 5% store services fee; Tier 2 is 13% (10% for Small Business Program and subscription renewals after year one). There’s also a 2% initial acquisition fee within six months of a first install. These apply when you communicate and promote offers; specific obligations and rates are documented in Apple’s support pages. (developer.apple.com)

If you were on the Alternative Terms Addendum without actionable links, you historically faced the €0.50 CTF per first annual install over one million. With the transition, Apple’s documentation outlines the move to CTC for digital goods and services across App Store, Web Distribution, and alternative marketplaces. (developer.apple.com)

CTC vs CTF: how the money actually flows

Here’s the thing: most teams don’t lose money on headline commission—they lose it on compounding percentages hitting different parts of the funnel. Let’s model three realistic patterns.

Scenario A: “External first” subscription app on Tier 1

Assume 100,000 EU installs in a month. Within six months, 20% buy a €10/month plan off-App-Store (via your site) because you communicate and promote offers in-app. In month one, Apple’s take can include: 2% initial acquisition (if the purchase falls within six months of first install), plus 5% Store Services (Tier 1), plus 5% CTC—on each qualifying transaction falling in the twelve-month attribution window after an install/update. Your processor fees (Stripe, Adyen) are separate; your VAT handling remains your responsibility. (developer.apple.com)

Rule of thumb: at scale, Tier 1 external flows roughly “cost” 7–12% all-in to Apple when both initial acquisition and CTC windows overlap with store services, shrinking closer to 5% outside the initial acquisition window—before your own payment processing and taxes.

Scenario B: “Brand marketing engine” on Tier 2

You value App Store discovery, ratings, auto-updates, and merchandising. The same €10/month plan, but now you trade up to 13% store services (or 10% if you’re Small Business Program or a subscription past year one), plus the same 5% CTC and possible 2% initial acquisition during its window. Margins drop, but if Tier 2’s discovery and trust lift conversion by a couple of points, it can net out favorably for high LTV products. (developer.apple.com)

Scenario C: “No actionable links” (historical) and the CTF

Teams that communicated prices off-platform without actionable links historically avoided CTC but faced the CTF at scale (€0.50 per first annual install over one million). As Apple moves toward CTC, plan as if CTF-based scenarios will sunset. Revisit paid growth once you’re eligible for CTC to avoid surprises in CAC:LTV. (developer.apple.com)

Can I mix in‑app purchase and alternatives in the same EU app?

No. Apple’s EU guidance says you can’t offer both App Store In‑App Purchase and alternatives in the same app on the same EU storefront. That’s partly a UX argument, but it’s also how fees and attribution windows stay coherent. Plan separate binaries or make a clean break by storefront. (developer.apple.com)

What exactly triggers the CTC—and for how long?

Two windows matter. The 2% initial acquisition fee applies within six months of a first install. The 5% store services fee (Tier 1 or 13%/10% in Tier 2) and the 5% CTC apply within 12 months of the most recent install, reinstall, or update—then expire unless another install/update resets the window. For subscriptions, renewals during that 12‑month window are in-scope. (developer.apple.com)

How the Store Services tiers affect your product roadmap

Tier 1 strips back discovery and convenience: no automatic updates, limited merchandising, reduced insights. It’s viable if most acquisition is direct and you don’t rely on App Store curation. Tier 2 restores the full feature set—handy for category leaders and apps betting on organic App Store demand. Independent reporting corroborated these tradeoffs when Apple introduced the two-tier model in 2025. (macrumors.com)

Engineering: the StoreKit External Purchase Link checklist

Let’s get practical. If you’re adopting external links or in-app communication of offers, wrap this into your sprint plan:

• Enable the entitlement and wire the mandated disclosure sheet via StoreKit External Purchase APIs when presenting actionable links. Don’t hack around it; the system UI and timing are specified. (developer.apple.com)
• Enforce region gating. Check the Storefront API and only expose alternatives in eligible EU storefronts. Guard against VPN and iCloud region mismatches. (developer.apple.com)
• Implement token capture and the External Purchase Server API on your backend. You must report monthly—refunds, renewals, corrections, even non-purchase events—within 15 days after Apple’s fiscal month end. (developer.apple.com)
• Decide Tier 1 vs Tier 2 at the app level and document it in runbooks. Product, CRM, finance, and support all feel the consequences.
• Audit your receipt and subscription logic so legacy IAP renewals keep billing on IAP while new sales follow the new channel. Don’t double-charge; Apple’s guidance is explicit here. (developer.apple.com)

Finance: a margin model you can actually use

Build a three-tab sheet: installs, conversions, and fees. In installs, track first installs, reinstalls, and updates by month—because they reset fee windows. In conversions, segment by channel (IAP vs external) and map how long each cohort stays inside fee windows. In fees, parameterize: initial acquisition (2% for six months), Store Services (5% or 13%/10%), and CTC (5%)—plus processor fees and VAT. Plug in price tiers and expected churn. You’ll find breakeven cases where Tier 2 is worth it and cases where Tier 1 maximizes net revenue.

One more lever: pricing strategy. If most of your EU revenue is external, small list‑price adjustments (e.g., +€0.50/month) can neutralize the CTC+services stack while staying under psychological thresholds.

Will my app get a warning badge for external purchases?

Apple has displayed disclosure screens and warning treatments in the EU since DMA compliance efforts began. Expect prominence around external purchases and alternative distribution; factor this into onboarding copy and FAQs so users aren’t spooked. (macrumors.com)

“People also ask” quick hits

Do I owe Apple commission on web renewals a year later?

Only if the renewal falls within the 12‑month window from the user’s last install/reinstall/update of your app that includes the entitlement. Outside that window, Store Services and CTC no longer apply until a new install/update resets it. (developer.apple.com)

Can I keep IAP in France and go external-only in Germany?

Yes, you can choose which EU storefronts use IAP or alternatives, but you can’t mix both within the same storefront for the same app. Structure your configuration by storefront and test it thoroughly. (developer.apple.com)

Is the Small Business Program still helpful?

If you’re eligible, it lowers the Store Services Tier 2 rate to 10% and waives the 2% initial acquisition fee. That can materially improve early-month unit economics for subscription businesses. (developer.apple.com)

Compliance and ops pitfalls I see teams hit

First, underreporting. Apple’s docs require monthly reporting of all qualifying transactions and tokens—even when they didn’t convert. Put it on a calendar with finance. Second, sloppy eligibility checks. If you show the external path to a non-EU storefront, you’re out of bounds. Third, onboarding copy. Disclosure sheets plus warning treatments can tank conversion if your UX doesn’t set expectations. Finally, SKU parity: ensure the entitlements and benefits match between IAP and external so support isn’t drowning in “why is web cheaper?” tickets. (developer.apple.com)

Contrast with Google Play external links

On Android, external link policies and fees follow a different logic and timeline. If you’re planning cross‑platform pricing and UX, study the platform‑specific fee models before you ship one global flow. We’ve mapped Google Play’s fee structure and shipping steps in our detailed guide on Play external links fees and plan, and a flow‑focused companion on shipping the external link model. This is where margin leakage often hides.

The decision framework: pick your lane

Use this simple three-step decision framework with your leads:

1. Define your storefront strategy. Will you keep IAP in select EU markets and go external in others? Either is fine—just don’t mix in a single storefront. (developer.apple.com)
2. Pick or test a tier. If App Store discovery moves your needle, Tier 2 is the default. If your acquisition is mostly owned (SEO/paid/social), Tier 1 can be a margin win.
3. Commit to reporting discipline. Stand up the External Purchase Server API, monthly accounting, and audit readiness. Missing reports risks interest charges and removal. (developer.apple.com)

What to do next (this week)

Here’s a pragmatic sequence we’re using with clients:

• Finance: build a cohort‑based model for CTC + Store Services + initial acquisition windows. Share it with PMMs and UA leads.
• Product/Engineering: ship a behind‑a‑flag external offer flow that’s storefront‑aware and calls the required disclosure sheet.
• Backend: implement token capture and monthly reporting for all external transactions (and non‑conversions) within 15 days after Apple’s fiscal month end. (developer.apple.com)
• CRM/Support: create EU‑specific FAQs and a renewal migration policy so legacy IAP subscribers aren’t double‑charged. (developer.apple.com)
• Legal/Compliance: review DMA‑related copy and data handling; align with your DPAs and privacy notices. If you need a checklist mindset, our App Store readiness checklist approach applies here too.

Zooming out: acquisition still matters

CTC and Store Services can feel like death by a thousand cuts; counterpunch with stronger owned channels. Rework EU funnels, speed up pricing tests, and clean up tracking. If your team is still rebuilding after the cookie changes, bookmark our perspective on third‑party cookies in 2026—it’s directly relevant to lifetime value math on iOS. If you’re also shipping Android, align verification, payouts, and policy maintenance across platforms; our Android developer verification guide pairs nicely with this piece.

Risks, limitations, and edge cases

Edge one: reinstalls and updates reset your 12‑month clock. If your release cadence is monthly, a big chunk of your active base may always sit inside the fee window; model that. Edge two: price localization. If you run external checkout in euros but App Store pricing tiers in local currencies, make sure tax/VAT and rounding don’t create perceived unfairness. Edge three: audits. Apple asserts audit rights over reported transactions; make sure your event mapping and reconciliation are airtight across web, iOS, and alternative stores. (developer.apple.com)

Who benefits from Tier 1 vs Tier 2?

Tier 1 favors brands that own their demand curve—news, productivity, large communities—where App Store discovery isn’t the primary engine. Tier 2 suits apps where App Store merchandising, ratings, and frictionless updates boost growth: games with frequent content drops, finance apps needing trust signals, utilities with casual churn. If you’re unsure, A/B at the storefront level for one quarter and measure blended CAC:LTV.

Final take

The new regime isn’t about one fee—it’s about timing windows and how they intersect with your release cadence and growth strategy. If you tally everything cleanly, the App Store EU fees 2026 framework is survivable—and in some cases, advantageous. Choose your storefront plan, lock your tier, wire reporting, and iterate on pricing. If you want a second set of eyes on your model or implementation, our team at ByBowu Services can help you ship with confidence.