Apple Alters App Store Policies to Comply with EU's Digital Markets Act

Apple has announced significant revisions to its App Store policies in the European Union (EU) to comply with the Digital Markets Act (DMA) and to avoid further fines from the European Commission. These changes include allowing developers to direct users to external payment options and introducing a new fee structure.

On June 26, 2025, Apple unveiled revisions to its App Store operations within the EU, including permitting developers to direct users to external payment options and implementing a new fee structure. These adjustments come after the European Commission imposed a €500 million fine in April for violations of the DMA's anti-steering provisions. While Apple plans to appeal the decision, the company is taking steps to comply with the DMA to avoid further penalties.

Background on the Digital Markets Act (DMA):

The DMA, which took effect in 2024, aims to prevent large technology companies, designated as "gatekeepers," from abusing their market power and to foster fair competition within the EU's digital market. Companies like Apple, Google, Facebook, and Amazon fall under this designation. The act mandates that these companies allow developers to inform users about and direct them to alternative purchasing options outside their platforms.

Details of Apple's Policy Changes:

• External Payment Options: Developers can now include multiple external links within their apps, directing users to alternative payment methods outside the App Store. This change addresses previous restrictions that limited developers' ability to inform users about more affordable purchasing alternatives.

• New Fee Structure:

• App Store Purchases: A 20% processing fee will be applied to purchases made via the App Store, reduced to 13% for developers in Apple's small-business program.
• External Transactions: For transactions conducted outside the App Store, fees will range from 5% to 15%.

European Commission's Response:

In April 2025, the European Commission imposed a €500 million fine on Apple for violating the DMA's anti-steering provisions, which require app stores to allow developers to inform users about purchasing options outside the platform. The Commission found that Apple's restrictions limited both developers' ability to promote alternatives and consumers' access to more affordable options.

Following Apple's announcement of policy changes, the Commission stated it would assess the new measures for compliance with the DMA and seek feedback from market participants.

Apple's Position:

Apple has expressed disagreement with the Commission's mandate and plans to appeal the decision. The company contends that the imposed changes may expose users to elevated security risks compared to the standard App Store environment.

Industry Reactions:

Critics, including Epic Games CEO Tim Sweeney, have labeled Apple's changes as inadequate, arguing they still disadvantage competing payment systems.

Social and Economic Implications:

• For Developers: The policy changes provide developers with more flexibility to offer alternative payment options, potentially leading to increased revenue and innovation within the app ecosystem.

• For Consumers: Users may benefit from more competitive pricing and a broader range of purchasing options.

• For Apple: While the changes aim to align with regulatory requirements, the new fee structure ensures Apple continues to derive revenue from transactions, even those conducted outside the App Store.

Conclusion:

Apple's revisions to its App Store policies in the EU mark a significant shift in response to regulatory demands. As the European Commission evaluates these changes, the outcome may set a precedent for how major tech companies adapt to evolving antitrust regulations globally.