In a significant policy shift, Apple has announced comprehensive changes to its App Store operations within the European Union (EU). These adjustments aim to align with the EU’s Digital Markets Act (DMA) and to mitigate potential fines that could amount to 5% of Apple’s average daily turnover.
Enhanced Developer Flexibility
Developers targeting EU consumers now have greater latitude in promoting external payment options. Previously, Apple restricted developers to a single static link directing users to external payment methods. This limitation has been lifted, allowing developers to incorporate multiple links, including those with tracking parameters or redirects. Promotions are no longer confined to the developer’s website; native in-app banners or web views can now guide users to third-party stores. Additionally, Apple’s scare sheet—a warning displayed when users attempt to access external links—will appear only the first time a user taps an external link, with an option to suppress it thereafter.
Introduction of a Tiered Fee Structure
Accompanying these policy changes, Apple has implemented a new three-part fee structure:
1. Initial Acquisition Fee: A 2% charge on the sale of digital goods or services to new EU users during the first six months after an app is downloaded. Members of Apple’s Small Business Program are exempt from this fee.
2. Store Services Fee: This fee is divided into two tiers:
– Tier 1: A 5% commission for minimal App Store features, including distribution, security checks, and basic app management. This tier excludes benefits such as automatic updates and merchandising tools.
– Tier 2: A 13% commission (reduced to 10% for small businesses and long-tenured subscriptions) that includes the full suite of App Store services.
3. Core Technology Charges: Developers operating under Apple’s alternative terms will continue to pay the €0.50 fee for each first annual install exceeding one million. Those adhering to standard terms will instead incur a 5% Core Technology Commission on revenue generated through links to external payment processors. Apple plans to unify these schemes into a single business model by January 1, 2026.
Regulatory Context and Developer Reactions
These changes follow a €500 million fine imposed by the European Commission in April for Apple’s anti-steering practices, which restricted developers from directing users to alternative payment options. The Commission had threatened additional sanctions if Apple did not further open its ecosystem. While Apple has expressed disagreement with the Commission’s stance and intends to appeal before the July 7 deadline, it is complying with the directives in the interim.
The developer community has responded swiftly to these developments. Tim Sweeney, CEO of Epic Games, criticized the revised fees as junk economics masquerading as reform, arguing that they continue to penalize developers seeking alternative payment routes. EU regulators have stated they will consult industry stakeholders and carefully assess whether Apple’s new policies meet DMA requirements before deciding on further action.
Implications for Developers and the App Ecosystem
Developers can immediately adopt the new promotional freedoms. However, many are evaluating whether the revised fee structure alleviates or merely redistributes the financial burdens they have long contended stifle competition. The outcome of Apple’s appeal and the European Commission’s assessment will be pivotal in determining whether this policy shift represents genuine liberalization or another chapter in the ongoing antitrust discourse between the EU and major tech companies.
