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Apple has announced changes to its App Store policies specifically for developers operating within the European Union in response to the commission’s investigation into potential anti-competitive practices.

The updated terms, announced on Aug. 8, are set to take effect later this year — coinciding with Apple’s forthcoming major software updates. It will grant developers unprecedented freedom to promote and facilitate purchases outside of Apple’s tightly controlled ecosystem. This means that app creators can now inform users about alternative payment options, link directly to external websites or marketplaces, and even provide detailed instructions on how to complete transactions outside of the app.

Apple risks fine in violation of DMA

Previously, Apple’s stringent rules required developers to use its in-app purchase system for all digital transactions, effectively locking them into a 30% commission fee. The European Commission’s Digital Markets Act (DMA), which was signed into law in 2022, however, aims to level the playing field by prohibiting such “gatekeeper” platforms from imposing unfair conditions on businesses.

In June, three months after the EU governing body opened a non-compliance investigation against Apple as well as other Big Tech firms, such as Google owner Alphabet and Facebook-parent Meta, the iPhone maker was found to be in breach of the DMA.

Notably, companies found in violation of the DMA could be fined up to 10% of their global turnover.  For a giant like Apple, that could mean a fine reaching tens of billions of dollars.

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To comply with EU rules, Apple will implement two new fees: a 5% acquisition fee for new users and a 10% store services fee for any sales made within 12 months of app installation, regardless of the platform used.

A European Commission spokesperson reportedly acknowledged Apple’s announcement, stating that they would evaluate the proposed changes to the compliance measures and consider feedback from the market, especially from developers.

Meanwhile, Spotify and the Coalition for App Fairness reportedly expressed skepticism regarding Apple’s proposed changes. The web music firm criticized the changes as “deliberately confusing” and seemingly in violation of the DMA, while the coalition labeled them as another attempt by Apple to maintain its market dominance.

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