Apple’s amended App Store policies for EU developers are under assessment by EU antitrust regulators, potentially paving the way for approval in the coming weeks and avoiding significant daily fines for non-compliance with the Digital Markets Act.
The European Commission is evaluating Apple’s proposed alterations to its App Store policies, following a EUR500 million fine levied against the company in April for non-compliance with the European Union’s Digital Markets Act (DMA). The potential approval of these revised policies would allow Apple to avoid incurring daily fines that could escalate to 5 percent of its average daily global revenue.
In an effort to align with the DMA, Apple introduced modifications to its App Store policies last month. These modifications include a tiered processing fee structure for purchases made directly through the App Store. Smaller developers are now subject to a 13 percent processing fee for such transactions, while other developers operating within the App Store framework will incur a 20 percent processing fee on their purchases.
The updated regulations also establish a cap on processing fees for transactions that occur outside the App Store, set at 15 percent. Under the new policy, developers have the potential to pay as little as 5 percent for these external transactions. Furthermore, to comply with DMA provisions, Apple has committed to allowing developers in the EU to integrate links to external payment methods directly within their applications, a practice previously restricted for developers in other regions, including India.
Following the initial imposition of the fine, EU antitrust regulators granted Apple a 60-day period to achieve compliance with the DMA regulations. This mandate specifically required Apple to eliminate existing limitations that prevented developers from informing users about potentially lower prices available outside the App Store or from providing direct links to these alternative deals and payment options.
Should the European Commission grant approval to Apple’s modified App Store policies, the company would successfully avert further substantial daily financial penalties, which could reach up to EUR50 million, or 5 percent of the company’s average daily global revenue. Apple has already remitted the initial EUR500 million fine imposed in April. The current policy adjustments are designed to meet regulatory requirements and secure the necessary approval from EU regulators concerning its revised App Store framework for developers operating within the region.
