Apple to avoid daily penalties, European Union agrees to App Store alterations, according to sources
In a significant move to comply with the Digital Markets Act (DMA) and avoid further fines from the European Commission, Apple has revamped its App Store rules and fee structure in the European Union.
The key changes include a new business terms structure that splits fees into three components: an Initial Acquisition Fee, a Store Services Fee, and a Core Technology Commission (CTC) that reflects Apple's ongoing investment in app development tools and services. This revised structure replaces the previous per-install fee with a 5% commission on sales made through in-app promotion of alternative payment options.
Developers now have the freedom to promote and link to external purchase options for digital goods and services outside of the App Store within their apps. These links can include multiple, dynamic URLs with tracking parameters and redirects, and developers can design their interface freely to communicate these options. Users will see a disclosure sheet the first time they tap on such external links but can opt out of seeing this disclosure in the future within the same app.
Apple has also lifted many previous restrictions limiting how developers communicate with users about external payment methods, allowing them to promote offers across all channels—not just their own websites—including other apps and alternative app marketplaces.
Starting with iOS 18.6 and iPadOS 18.6, users will see a new interface for installing alternative app marketplaces or apps from developer websites. Later in 2025, Apple plans to introduce an API enabling developers to initiate downloads of apps distributed outside the App Store from within their apps.
The European Commission is expected to approve these changes in the coming weeks. The EU antitrust enforcer found that Apple's actions breached the Digital Markets Act, and Apple earlier this month stated that it had implemented the changes to avoid punitive daily fines. However, Apple is still appealing the initial €500 million fine imposed in April.
Developers who direct customers to external payment methods will pay a fee between 5% and 15%. Apple will charge a 20% processing fee for App Store purchases, which may go as low as 13% for small businesses.
The Digital Markets Act is aimed at reining in Big Tech and giving rivals more room to compete. The EU watchdog stated that all options remain on the table regarding the approval of Apple's proposed changes. Apple did not immediately respond to a request for comment regarding the changes.
These revisions come in response to regulatory pressure and aim to maintain Apple's control while addressing competition concerns. The changes are expected to help Apple avoid potentially hefty daily fines, which could have been 5% of Apple's average daily worldwide revenue, or approximately €50 million per day. The timing of the approval could still be subject to change.
Developers in the European Union will now pay a 5% commission on sales made through in-app promotion of alternative payment options, as part of Apple's revised fee structure in compliance with the Digital Markets Act (DMA). This new structure, which includes an Initial Acquisition Fee, a Store Services Fee, and a Core Technology Commission (CTC), also allows developers more freedom to promote external payment options and communicate these options within their apps.
