Epic Games Rejects Apple’s Revised EU App Store Fees, Warning of Regulatory Loophole

Smartphone displaying Epic Games logo in front of Apple logo and European Union flag

Quick Read

  • Apple simplified its EU App Store fees to a 20% commission for alternative payments, 15% for external links, and a 5% core fee.
  • Epic Games and CEO Tim Sweeney rejected the changes, labeling them as 'new junk fees' that violate the EU's Digital Markets Act (DMA).
  • The European Commission welcomed the simplified framework but promised to actively monitor its implementation starting October 1, 2026.
  • This dispute mirrors an ongoing battle in the US, where Epic also rejected Apple's proposed 5% to 15% fees for external purchases.

Epic Games and its chief executive, Tim Sweeney, have strongly rejected Apple’s newly revised App Store fee structure in the European Union, labeling the updated terms as “new junk fees” designed to bypass antitrust mandates. The confrontation erupted shortly after Apple announced a simplified, percentage-based pricing model aimed at satisfying the European Commission under the region’s landmark Digital Markets Act (DMA).

The dispute marks the latest chapter in a multi-year global conflict over mobile ecosystem economics. While Apple maintains that its updated rules resolve outstanding regulatory concerns ahead of an October 1, 2026, implementation date, Epic Games argues the changes do nothing to foster genuine competition. Instead, the developer claims Apple is continuing to impose unlawful financial friction on third-party marketplaces and payment systems.

The Revised Fee Structure: What Apple Changed

In an effort to appease European regulators, Apple announced a restructuring of its iOS and iPadOS developer terms within the EU. The update simplifies the previous fee system—which had drawn heavy criticism for its complexity—by shifting exclusively to percentage-based commissions. Under the new model, Apple will charge:

  • A 20% fee on transactions completed via alternative in-app payment processing options.
  • A 15% fee on transactions initiated through external web links (link-outs) that direct users to purchase options outside the app.
  • A 5% core fee, which replaces some of the previous acquisition-based calculations, such as the 2% Initial Acquisition Fee introduced in 2025.

Apple presented these adjustments as a good-faith resolution to its ongoing disagreements with the European Commission. Following the announcement, the Commission stated that it welcomed the revisions but would closely monitor their practical implementation once they go live on October 1.

Epic Games and Tim Sweeney Denounce the Revisions

The response from Epic Games was swift and uncompromising. Writing on social media, the Epic Games Newsroom accused Apple of introducing “new junk fees that do nothing to open up the mobile app ecosystem to competition.” The developer argued that the DMA explicitly requires gatekeepers like Apple to allow developers to offer external purchase links “free of charge” and to permit the “effective use” of competing app stores.

Epic’s founder and CEO, Tim Sweeney, expanded on these objections, asserting that Apple’s continued collection of commissions on out-of-app transactions directly violates European law. Sweeney also criticized media coverage of the announcement, specifically taking aim at a Bloomberg report that used the word “settle” in its headline. Sweeney clarified that the changes were a unilateral move by Apple rather than a negotiated legal settlement, and warned that the proposed terms do not equate to legal compliance.

Furthermore, Sweeney accused Apple of maintaining artificial “prohibitions and friction” designed to coerce younger users into utilizing Apple’s native, higher-commission payment pipelines. Epic contends that if regulators accept Apple’s new terms, the DMA’s core consumer-protection goals will be rendered meaningless.

The Battle Over ‘Free of Charge’

The legal crux of the disagreement lies in the interpretation of the DMA’s text. Article 5(4) of the regulation mandates that gatekeepers must allow business users to promote offers and conclude contracts with acquired users free of charge, regardless of whether they use the gatekeeper’s core platform services.

However, the boundaries of “free of charge” remain highly contested. Apple’s legal defense rests on the premise that while the direct communication and routing of the user to an external site cannot be taxed, the company remains entitled to collect fees for the broader intellectual property, user acquisition, and platform services it provides. This distinction previously justified Apple’s 2% Initial Acquisition Fee and continues to underpin the new 15% link-out commission.

A Mirror to the United States Legal Battle

The regulatory clash in Brussels closely mirrors the ongoing courtroom battles between Epic and Apple in the United States. On August 13, 2026, Apple submitted a proposed fee structure to a US District Court in an attempt to satisfy injunctions regarding anti-steering practices. Under that proposal, Apple suggested charging external transaction fees ranging from 15% for standard developers to 5% for participants in its Small Business Program.

As in Europe, Epic immediately filed objections in the US court, asserting that the proposed fees violated the spirit of judicial guidance. The parallel disputes demonstrate that Epic’s global strategy remains focused on eliminating all percentage-based commissions on transactions occurring outside of Apple’s official App Store billing pipeline.

Sources

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Creator:Azat TV Editorial

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