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Apple Introduces New App Store Rules Amid EU Regulatory Pressure

On Thursday, Apple announced a series of changes to its App Store policies in Europe aimed at complying with the European Union's Digital Markets Act (DMA) and potentially avoiding a steep 500 million euro ($585 million) fine. The updated framework features a complex system of fees and programs for app developers, reflecting Apple's ongoing challenge to balance regulatory demands with its business model.

A Multi-Tiered Fee System Targets App Developers

Apple’s revised policies introduce a new "core technology commission" — a 5% fee applied to all digital purchases made outside the App Store. This fee adds to existing charges, creating a scenario where some developers could pay up to three separate fees for a single download. Despite these adjustments, Apple maintains that the changes represent a modification rather than a complete overhaul of its previous system, which first attracted scrutiny from the European Commission.

Regulatory Backdrop: Apple’s Response to EU Fines

Apple says the changes were made reluctantly, under pressure from the European Commission, which has threatened daily fines of up to 50 million euros if the company fails to comply. A spokesperson for Apple stressed the company’s belief that these new policies are consistent with the DMA and will enable it to avoid penalties. However, Apple also announced plans to appeal, signaling ongoing disagreement with the EU's enforcement approach.

The European Commission confirmed it is reviewing Apple’s new terms and consulting market operators and third parties before deciding on further action.

The Broader Conflict: Steering Rules and Developer Pushback

Under the DMA, Apple must now allow developers greater freedom to promote alternative purchasing methods, breaking from its previous ban on "steering" users toward cheaper payment options outside the App Store. Yet, Apple's introduction of fees on off-platform transactions — including a 50-cent charge on these downloads announced earlier in 2024 — has drawn sharp criticism.

Notably, Spotify and other major developers have accused Apple of undermining the spirit of the DMA, arguing that the layered fees and commissions threaten the viability of alternative billing systems and competition within the app ecosystem.

Epic Games CEO Tim Sweeney labeled Apple’s approach as “malicious compliance,” claiming it unfairly taxes competing payment options and hampers fair competition both in Europe and the U.S.

U.S. Legal Developments Influence European Dynamics

This regulatory tussle coincides with significant changes in the U.S., where a California court ruled against Apple’s restrictions on steering in a landmark case involving Epic Games. The court ordered Apple to stop charging commissions on external purchases, leading to shifts in app economics. As a result, companies like Amazon and Spotify in the U.S. now direct users to external websites for purchases, bypassing Apple’s 15% to 30% commission.

Despite these developments, Apple continues to enforce its commission policies aggressively in Europe, maintaining that its system is fair and compliant.

Outlook: Ongoing Scrutiny and Industry Implications

The EU’s 500 million euro fine announced in April remains a looming risk for Apple. The Commission has left room for the company to make corrective adjustments but continues to seek input from critics and stakeholders to assess compliance.

As the debate unfolds, Apple’s evolving App Store policies highlight the tension between regulatory demands aimed at fostering digital competition and the company’s efforts to preserve a lucrative revenue stream from its App Store ecosystem.

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