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Apple Overhauls EU App Store Rules to Avoid €500M Fine

June 26, 2025
apple-overhauls-eu-app-store-rules-to-avoid-€500m-fine

New fee structure aims to comply with the Digital Markets Act but faces backlash

Apple announced Thursday a sweeping revision to its App Store policies in Europe, aiming to sidestep a €500 million ($585 million) fine imposed by the European Commission for violating the Digital Markets Act (DMA). The changes include a layered fee system that some developers argue continues to undermine fair competition despite regulatory pressure.

The iPhone maker introduced a new “core technology commission” — a 5% fee on digital purchases made outside of its App Store — along with additional charges on off-platform downloads and alternative billing systems. In some cases, app developers could now be subject to up to three fees for a single download.

“The European Commission is requiring Apple to make a series of additional changes to the App Store,” an Apple spokesperson said. “We disagree with this outcome and plan to appeal.” Apple claims the new structure complies with the DMA and believes it should avert further penalties.

Commission scrutiny continues

The European Commission has not confirmed whether Apple’s latest move satisfies regulatory demands. A spokesperson said the EC is still reviewing the revised policies and gathering industry feedback before making a final decision.

“It is particularly important to obtain the views of market operators and interested third parties before deciding on next steps,” the EC noted in a statement.

Industry pushback intensifies

The response from developers and rivals has been swift. Critics argue that Apple’s new system — though technically DMA-compliant — violates the spirit of the law. Spotify and Epic Games have been especially vocal, accusing Apple of “malicious compliance.”

“Apple’s new Digital Markets Act malicious compliance scheme is blatantly unlawful in both Europe and the United States,” said Epic Games CEO Tim Sweeney, who successfully challenged Apple’s “steering” restrictions in the U.S. earlier this year.

Under the DMA, Apple must allow app developers to inform users about cheaper alternatives or payment methods outside its ecosystem. The rule effectively dismantles Apple’s long-standing ban on “steering,” a key aspect of its App Store control.

Global shift in platform power

The new policies come amid growing global scrutiny of Apple’s app distribution practices. In the U.S., Apple’s steering restrictions were recently struck down, forcing the company to let apps like Amazon Kindle and Spotify link users directly to their websites without incurring Apple’s 15–30% commission fees.

Apple’s App Store, a major revenue generator, has become a flashpoint in debates about platform fairness. The company’s attempts to preserve its profit model while complying with new legal frameworks are being closely watched in both regulatory and developer circles.