Apple appears set to dodge potentially devastating daily fines from European Union regulators, according to a new report Tuesday. Sources indicate the company’s revised App Store policies will likely receive approval in the coming weeks.
Apple App Store changes may avoid EU fines
The iPhone giant made significant changes to its App Store rules and fee structure last month after facing mounting pressure from EU antitrust enforcers, and approval may be near, Reuters reported. Under the new system, developers will pay a 20% processing fee for purchases made through the App Store, though this could drop to as low as 13% for participants in Apple’s small-business program.
New payment options for developers
Perhaps more significantly for the developer community, Apple has introduced greater flexibility for external payments. Developers who direct customers to payment methods outside the App Store will face reduced fees ranging from 5% to 15%. The company has also removed previous restrictions, allowing developers to use unlimited links to guide users toward external payment options.
These changes represent a substantial shift from Apple’s historically rigid App Store policies, which have long been a source of tension between the company and app developers seeking more control over their revenue streams.
EU pressure drives policy overhaul
The policy revision came after the European Commission imposed a hefty 500 million euro ($586.7 million) fine on Apple in April. Regulators determined that the company’s technical and commercial restrictions violated the Digital Markets Act (DMA) by preventing app developers from informing users about cheaper alternatives available outside the App Store.
The DMA, designed to curb the power of major tech companies and promote competition, gave Apple a 60-day deadline to eliminate these restrictions. The stakes were exceptionally high — failure to comply could have resulted in daily fines equivalent to 5% of Apple’s average daily worldwide revenue, approximately 50 million euros per day.
Regulatory approval expected soon
People with direct knowledge of the matter suggest the European Commission will likely approve Apple’s changes within the coming weeks, though the timeline remains subject to change. However, EU officials maintain they are still evaluating the proposed modifications.
“All options remain on the table. We are still assessing Apple’s proposed changes,” an EU watchdog spokesperson stated.
Apple has not yet responded to Reuters‘ requests for comment regarding the expected approval. Earlier this month, the company acknowledged implementing these changes specifically to avoid punitive daily fines while simultaneously criticizing the Commission for dictating how it operates its digital storefront.
Impact for Apple users and developers
For Apple users, these changes could eventually translate to more competitive pricing options as developers gain greater freedom to offer alternative payment methods. And the revised fee structure may also encourage more developers to create iOS apps, potentially expanding the ecosystem of available applications.
The resolution of this regulatory standoff marks a significant moment in the ongoing global effort to regulate Big Tech companies and their digital marketplaces. Apple’s compliance sets a precedent for how major tech firms adapt to evolving antitrust legislation.
