What's happened
Apple has implemented changes to its App Store policies to comply with EU regulations, following a €500 million fine for preventing app developers from directing users to cheaper payment options. The new rules allow developers to link to alternative payment methods, while Apple introduces a tiered fee structure for app developers.
What's behind the headline?
Key Changes and Implications
- New Payment Links: Developers can now link to alternative payment methods across various channels, including websites and other apps, without the previous restrictions imposed by Apple.
- Tiered Fee Structure: Apple has introduced a complex fee system, replacing the Core Technology Fee with an initial acquisition fee and a store services fee, which varies based on the developer's tier.
- Compliance vs. Competition: While Apple claims these changes are in compliance with EU regulations, critics argue they still limit fair competition. Epic Games' CEO Tim Sweeney described Apple's actions as 'malicious compliance,' suggesting that the new rules still disadvantage developers.
- Future Outlook: As Apple appeals the EU's ruling, the effectiveness of these changes in fostering a competitive environment remains to be seen. The ongoing scrutiny from regulators may lead to further adjustments in Apple's business practices.
What the papers say
According to AP News, Apple is making changes to avoid additional fines after a €500 million penalty for non-compliance with the DMA. The new rules allow developers to direct users to cheaper payment options outside the App Store. TechCrunch elaborates on the specifics of the new fee structure, highlighting the introduction of a two-tier system that could impact smaller developers. The NY Post notes that developers will pay a processing fee of 20% for App Store purchases, which could be reduced for small businesses. This contrasts with the concerns raised by Epic Games' CEO, who criticized Apple's compliance measures as insufficient for fair competition.
How we got here
The European Commission fined Apple €500 million in April for violating the Digital Markets Act (DMA) by restricting app developers from informing users about cheaper payment options outside the App Store. Apple faced further penalties if it did not comply by June 26, 2025.
Go deeper
- What are the implications for app developers?
- How will this affect Apple's business model?
- What are the next steps in the EU's regulatory actions?
Common question
More on these topics
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Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.