In a significant move to align with the European Union's Digital Markets Act (DMA) and avoid further regulatory penalties, Apple has recently announced a series of sweeping changes to its App Store policies in the EU. These changes, which have been implemented to address the EU's concerns over anti-competitive practices, impact how developers can promote, sell, and distribute apps and digital goods within the EU on the App Store.
The EU's Digital Markets Act, designed to curb the power of large tech companies, has been a major catalyst for these changes. The European Commission, the EU's executive arm, fined Apple €500 million in April for preventing app makers from informing users about cheaper options outside the App Store. This penalty came with a 60-day deadline for Apple to comply with the DMA or face further fines, potentially reaching up to 5% of the company's average global revenue per day.
To avoid further penalties, Apple has introduced several key changes, including allowing developers to promote offers for digital goods and services across all channels, not just their own websites. This encompasses external websites, other apps, and alternative app marketplaces, and includes in-app promotions using native UI or in-app web views. Previously, developers were limited to a single static URL with restrictions on tracking parameters and redirects. Now, they can include multiple destinations in their apps, with the freedom to design their interfaces for links and promotions.
Apple is also shifting its stance on the "scare sheet" that users see when they tap on external links. While a disclosure sheet will still appear the first time a user taps a link, there's now an option to opt out of seeing it for future interactions within the same app.
In addition to these policy changes, Apple is introducing a new fee structure for developers in the EU. This includes a two-tier system for Store Services fees. Tier 1 offers a lower commission on in-app purchases but limits key features like automatic app updates and search suggestions. Tier 2 grants access to the full suite of App Store services for a higher commission. Furthermore, Apple is introducing a Core Technology Commission (CTC) of 5% on sales of digital goods or services that developers promote within their app and that are sold through alternative channels. By January 1, 2026, Apple plans to move to a single business model in the EU for all developers, transitioning from the Core Technology Fee (CTF) to the CTC on digital goods or services.
These changes have been met with mixed reactions. While some welcome the increased flexibility and choice for developers and consumers, others criticize the new fee structure, arguing that it still limits competition. Epic Games CEO Tim Sweeney, a vocal critic of Apple's App Store policies, has criticized the updated rules, saying they still limit competition.
The European Commission has acknowledged Apple's announcement and will now assess the new business terms for DMA compliance. The commission will gather feedback from market players before deciding on the next steps. Apple has stated its disagreement with the European Commission's requirements and plans to appeal them.
These changes represent a significant shift in Apple's approach to the App Store in the EU. While the long-term impact of these changes remains to be seen, they demonstrate Apple's proactive efforts to address regulatory concerns and avoid further penalties under the DMA.
