ISLAMABAD: Apple has updated its App Store rules and fee structure in the European Union to comply with an antitrust order under the EU’s Digital Markets Act.
The changes come after the European Commission fined Apple €500 million in April and warned of daily penalties for non-compliance.
Under the revised system, developers using the App Store will pay a 20% processing fee on in-app purchases.
Small businesses enrolled in Apple’s special program may see that fee reduced to 13%.
Crucially, developers now have the freedom to direct users to alternative payment platforms outside the App Store.
However, they will still be charged fees ranging from 5% to 15% for such off-platform transactions.
Apple Seeks Compliance to Avoid Costly Fines
Apple was given 60 days by the European Commission to comply with the new rules or face daily fines of up to 5% of its average global revenue—roughly €50 million per day.
In a public statement, Apple expressed its disagreement with the Commission’s decision and confirmed plans to appeal.
Despite that, the company said it had implemented the required changes to avoid further financial penalties.
The EU’s antitrust body will now assess Apple’s updates for full compliance with the Digital Markets Act.
The Commission also invited feedback from developers and other stakeholders before determining next steps.
Critics Say Changes Fall Short of Fair Competition
Industry voices have criticized Apple’s revised model.
Epic Games CEO Tim Sweeney, a longtime critic and legal opponent of Apple, called the changes “a mockery of fair competition.”
He argued that Apple continues to “tax” rival payment systems and cripple them commercially within its ecosystem.
Apple has not yet issued a response to Sweeney’s comments.
The regulatory scrutiny in the EU is expected to set a precedent that could influence Apple’s practices in other global markets.
