Apple has now amended its App Store policies in the European Union under-pressure after being under fire by the EU antitrust regulators. They have been compelling the company to dismantle obstacles that it had placed to ensure that developers could not direct customers to alternative payment options that were independent of the App Store. The action follows Apple being fined a huge 500 million euros by the bloc over the breach of the Digital Markets Act that seeks to ensure more equitable competition and consumer choice in digital markets.
The essence of the alterations within Apple lies in new fee rates and increased freedom of the developers. Developers are now able to send users to an external payment system and use any number of links in their apps. However, Apple has introduced a pricing structure to ensure revenue inflow. The transactions on the App Store will continue to attract a 20% processing fee, which may be reduced to 13% with small businesses. When developers refer their customers off-platform to make payments, they will pay at least 5% and up to 15% of the cost of the service. It also introduced a new 5% core technology commission on out-of-app purchases, and Apple will start offering the same commissions in a single business model to EU developers beginning January 2026. These variations are not repairs but rather complex modifications to fit under the law and maintain the business interest of Apple. Apple had said publicly that it disagrees with the requirements of the EU and is going to appeal the decision.
The direct impact is that the developers in Europe are now free to provide alternative payment forms and even better offers to the consumer. This may result in more competition, price reduction and an innovative app ecosystem. Nonetheless, even with the transactions out of the platform, Apple continues to collect a certain amount of its revenue, as is indicated by the new fee regime. Not every critic is satisfied with the changes, with some also including major developers in this camp, as they believe that it is not enough and that Apple charges still tax the digital marketplace and limit competition.
The future is unclear, as the European Commission is analyzing new terms by Apple to see whether they actually work according to the Digital Markets Act. This review and subsequent appeal by Apple will determine the degree to which Apple can exercise control of its app ecosystem with Europe. Should regulators deem the changes as inadequate, Apple may be struck with additional fine charges or adjustments that are even more dramatic.
