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Apple has avoided a potential financial blow in Europe by adjusting its App Store policies to comply with EU regulations. The European Commission is expected to approve the changes, which come after a €500 million fine was issued earlier this year for violating the Digital Markets Act (DMA).
The penalty, announced in April, stemmed from Apple's restrictions on developers steering users toward alternative payment platforms. Regulators argued this violated the DMA, which seeks to limit the power of large tech companies and ensure fairer competition.
In response, Apple revised its fee structure. Developers now face a 20% commission for in-app purchases made through the App Store. Small businesses in Apple's dedicated program may pay as little as 13%. Those directing customers to external payment methods will be charged between 5% and 15%, depending on the transaction. Apple also dropped previous limitations on the number of links developers can use to guide users to external platforms.
If the EU had rejected Apple's proposals, the tech giant risked daily fines amounting to 5% of its average global revenue, approximately €50 million or $58.7 million per day.
An EU spokesperson told Reuters, "All options remain on the table. We are still assessing Apple's proposed changes." While a final decision is pending, insiders report the Commission is likely to approve the new model in the coming weeks.
Apple defended its decision, saying it implemented the changes to avoid excessive penalties. However, the company also criticized EU regulators for dictating how it operates the App Store.
The regulatory pressure reflects a broader shift in Europe's approach to digital marketplaces. The Digital Markets Act, now in force, mandates that dominant tech firms allow users and developers more freedom in their digital interactions.
As the Commission finalizes its decision, Apple's policy shift may signal how other tech giants will adapt to increasing scrutiny under the DMA. The situation underscores the growing tension between platform control and regulatory oversight in today's tech-driven economy.
