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Post by : Anis Farhan
Photo: Reuters
Facing a significant €500 million fine earlier this year, Apple announced sweeping changes to its App Store in the European Union, designed to comply with the powers granted by the Digital Markets Act (DMA) and to avoid repeating violations. Under the revised structure, developers using the App Store will now face a 20% processing fee on in‑store purchases, with that reduced to 13% for qualifying small businesses within Apple’s program. Meanwhile, developers who guide users to external payment platforms will pay fees between 5% and 15%, depending on volume and usage. Crucially, Apple is also allowing an unlimited number of external links—a major shift from its previous restrictive policy.
These changes aim to neutralise the steering barriers that EU regulators said unfairly tied customers to Apple’s own payment system. Apple has contended that these new rules risk compromising user experience and privacy, and the company plans to appeal the earlier antitrust ruling. Meanwhile, the European Commission has opened a review process to determine if the revisions fully meet the DMA’s mandates and is actively seeking feedback from market operators.
Criticism has been swift from rival developers. Epic Games CEO Tim Sweeney described the move as “a mockery of fair competition,” arguing that developers relying on external payment systems still face punitive charges and continued structural disadvantages within the App Store.
These updates arrive against a deadline imposed by EU regulators: Apple had 60 days from April to comply or face daily fines of up to 5% of its global turnover, following the enforcement action under the DMA. The company’s changes now trigger a compliance evaluation by the Commission.
This development is part of a broader European regulatory push against dominant “gatekeeper” platforms that include Apple, Google, Meta, and Amazon. Those firms face mandatory obligations under the DMA, with non-compliance penalties reaching up to 10% of their global revenues. Apple has made prior adjustments, such as enabling alternative browsers and Office streaming services in the EU, but this marks its most significant concessions yet on payments and app distribution.
With the U.S.–EU trade dialogue heating up ahead of a July 9 deadline, Apple’s compliance moves will also draw attention in Washington. The outcome of the EU’s assessment—and Apple’s anticipated appeal by early July—will shape the future of how developers can interface with Apple’s ecosystem in Europe.
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