Apple (AAPL.O) on Thursday implemented sweeping changes to its App Store operations in the European Union following regulatory demands from the bloc’s antitrust authorities. These adjustments are part of the company’s effort to comply with the Digital Markets Act (DMA), which aims to promote fair competition by curbing the dominance of large tech platforms.
Under the revised rules, Apple will charge developers a 20% processing fee for transactions made within the App Store. Developers enrolled in Apple’s small business program may see that fee drop to as low as 13%. Additionally, developers directing users to external payment platforms will now face fees ranging from 5% to 15%. Importantly, they can now include unlimited links in their apps to guide users outside of Apple’s ecosystem—a significant departure from prior restrictions.
Avoiding Steep Daily Fines
These changes are Apple’s attempt to avoid daily fines of 5% of its average global revenue, which translates to about €50 million ($58 million) per day. The European Commission had given Apple a 60-day deadline to comply with the DMA or face these penalties. Apple has already incurred a €500 million ($580 million) fine in April for failing to meet previous obligations under the same law.
Despite making the changes, Apple remains defiant.
“The European Commission is requiring Apple to make a series of additional changes to the App Store. We disagree with this outcome and plan to appeal,” the company said in a statement.
EU Responds to Apple’s Adjustments
The European Commission acknowledged receipt of Apple’s changes and announced it would carefully review the company’s proposals to determine whether they meet the requirements of the Digital Markets Act.
This development comes as part of the EU’s broader crackdown on anti-competitive practices among dominant tech platforms. Along with Apple, other firms such as Google, Amazon, and Meta are also under close watch to ensure compliance with the DMA.
Implications for App Developers
For app developers in the EU, Apple’s revised policy offers greater flexibility and transparency. The lower in-app transaction fees and permission to direct users to external payment systems may significantly reduce operational costs and increase revenue retention.
Although Apple still charges a fee for off-platform payments, the ability to steer users toward alternative options marks a notable shift from Apple’s previously rigid structure.
A Step Toward Global Reform?
While these updates currently apply only to EU countries, they may set a precedent for global changes to Apple’s App Store model. The company faces similar regulatory pressures in the United States, South Korea, Japan, and other regions. Notably, Apple’s legal battle with Epic Games over App Store policies continues to drive calls for reform worldwide.
As governments and regulators push for greater platform accountability, Apple’s concessions in the EU might become the blueprint for broader change across the global tech landscape.
The Road Ahead
As the EU reviews Apple’s revised practices, both developers and consumers will watch closely to see whether these changes bring lasting improvements in transparency, fairness, and competition. With the Digital Markets Act now in full effect, the pressure is on not just Apple, but all major digital platforms, to reinvent how they operate in an era of increasing regulatory oversight.
