Apple shares jump after EU App Store fee overhaul

Apple ↗ 0.09% shares rose nearly 3% on Wednesday, outperforming the broader technology sector, after the company announced a sweeping restructuring of its App Store terms for European developers that investors view as a meaningful step toward resolving its regulatory standoff with the European Union.

EU Fee Overhaul Removes Regulatory Overhang

Apple said it would eliminate the controversial per-install Core Technology Fee for developers distributing apps outside its App Store, replacing it with a flat 5% commission on digital transactions set to take effect October 1, 2026. The company will also lower its standard European in-app purchase commission to 26% and allow developers to offer alternative payment options.investing+2

The changes followed collaboration with the European Commission and are widely interpreted as bringing Apple into closer compliance with the Digital Markets Act, removing what had been a persistent source of legal and financial uncertainty for investors.benzinga+2

Analyst Optimism and AI Positioning

Adding momentum, Rothschild & Co Redburn upgraded Apple to Buy from Neutral on August 17, setting a $400 price target and citing potential upside from a foldable iPhone and an improved artificial intelligence strategy. Deepwater Asset Management Managing Partner Gene Munster told CNBC that Apple is "one of the biggest underappreciated companies" among mega-caps, arguing the company has "finally got it right" with Siri and could see its shares re-rated as the assistant becomes a foundation for personalized AI.macdailynews+2

Apple's fiscal third-quarter results also continue to underpin investor confidence: revenue rose 16% to $109.4 billion while earnings per share surged 29% to $2.02. Unlike peers spending heavily on data center infrastructure, Apple's relatively modest AI capital expenditure has become an asset in investors' eyes.benzinga+1

Outperformance Amid Mixed Tech Tape

Apple's gain stood out against a mixed market backdrop, with the S&P 500 modestly higher and the Nasdaq Composite roughly flat. Apple was among the strongest performers in the Magnificent Seven cohort, having been the only member of the group to finish in positive territory during the prior session. The stock trades at roughly 36 times trailing earnings — a premium that some analysts, including Jefferies' Edison Lee, have flagged as vulnerable if the next iPhone cycle or AI-driven services growth disappoints.investing+2