In a significant move to align with European Union antitrust regulations, Apple has revised its App Store policies within the bloc, introducing new fee structures and allowing greater freedom for developers to guide users to external payment platforms.
The changes come in response to a ruling from EU regulators under the Digital Markets Act (DMA), which required Apple to eliminate barriers that restricted app developers from directing users away from the App Store’s in-app purchasing system.
Revised Fees and Developer Options
Under the updated framework, Apple will impose a 20% commission on App Store purchases, with smaller developers under Apple’s small business program eligible for a reduced rate of 13%. For developers who choose to steer users to payment systems outside the App Store, Apple will now charge a fee ranging from 5% to 15%, depending on the app’s revenue and structure.
Developers will also now have the option to incorporate unlimited external payment links, a key point of contention in previous disputes with regulators and developers.
Avoiding Hefty Fines
The overhaul comes amid growing pressure from the European Commission, which gave Apple 60 days to comply with the DMA or face daily fines of up to €50 million ($58 million). Apple has already faced a €500 million ($580 million) fine earlier this year for violating EU antitrust policies, underscoring the seriousness of the standoff.
“We disagree with this outcome and plan to appeal,” Apple stated, signaling that the tech giant is not backing down entirely from its position despite the regulatory demands.
Commission to Scrutinize Apple’s Response
The European Commission announced it will conduct a thorough review of Apple’s revised policies to determine whether they fully comply with the requirements of the DMA.
As part of its evaluation, the Commission emphasized the need for input from market stakeholders and third parties, suggesting that feedback from app developers and consumer advocacy groups will influence the final judgment.
Industry Reaction: Skepticism and Criticism
Apple’s changes have already drawn sharp criticism from long-time critics. Tim Sweeney, CEO of Epic Games, one of Apple’s most vocal opponents in the digital marketplace space, labeled the update “a mockery of fair competition.”
In a post on X (formerly Twitter), Sweeney argued that apps offering alternative payment methods are still effectively penalized and “commercially crippled” by Apple’s revised fee structure.
Apple has not issued a response to Sweeney’s comments.
What’s at Stake
The outcome of this dispute could reshape how app ecosystems operate in Europe and potentially beyond. If the European Commission deems Apple’s changes insufficient, the company could face escalating financial penalties or further regulatory intervention. Meanwhile, the tech world watches closely as the DMA is tested against one of its most powerful targets to date.