Apple Inc. announced a sweeping overhaul of its European Union app store business model with a simplified commission structure amid regulatory pressure.

Effective Oct. 1, the tech giant will eliminate its controversial per-install Core Technology Fee and replace it with a flat 5% Core Technology Commission on digital sales for apps distributed through alternative marketplaces or directly via the web.

The concession, announced Tuesday, is designed to resolve a bitter dispute with European Commission regulators, who argued Apple’s previous framework violated the landmark Digital Markets Act (DMA).

Enacted in 2022, the DMA forces major tech gatekeepers to open closed ecosystems, allow rival app stores, and permit third-party payment systems. Regulators previously criticized Apple’s complex rules and fees for creating artificial commercial barriers that discouraged developers from leaving the official App Store.

Under the unified EU structure, Apple will adjust its commission tiers across the board. Purchases using Apple’s standard payment system will draw a 26% commission, down from 30%. Apps within the App Store using independent payment processing will face a 20% fee. Transactions completed by linking out to a website will incur a 15% charge. Meanwhile, apps hosted on third-party stores or the web will pay the 5% Core Technology Commission.

Many of these rates can be cut to 10% or 15% for participants in Apple’s small business and partner programs. The new policy also removes separate acquisition and store service fees, while introducing new parental consent controls for alternative payment channels.

While the European Commission welcomed the changes and noted it would closely monitor implementation, critics remain skeptical. Epic Games Inc., the Fortnite creator locked in years-long antitrust litigation with Apple globally, condemned the revised rules. Epic labeled the new commissions junk fees, arguing they undermine competition and render the DMA meaningless if regulators accept them.

The European overhaul highlights mounting global scrutiny over Apple’s lucrative Services division. While markets like Japan and Brazil have pushed for similar opening of iOS software, Apple continues to fight restrictions in the U.S., where it recently proposed a 15% fee on external payment links. Nevertheless, in recent regulatory filings, Apple conceded that under expanding third-party distribution rules, it may ultimately earn no commission at all on some alternative transactions.