Apple alters EU app store rules to avoid fines

Apple has revamped its App Store policies in the European Union in a last-minute attempt to avoid further fines under the bloc’s digital competition laws.

The move follows a €500 million ($585 million) penalty imposed by the European Commission in April for preventing app developers from directing users to cheaper purchasing options outside Apple’s App Store.

The Commission had given the tech giant a 60-day deadline, which expired on Thursday, to implement changes and avert additional periodic fines.

Under the new terms, Apple will make it easier for app developers to inform users about better deals on digital products and alternative payment options, including other websites, apps, or app stores.

The California-based company is also introducing a two-tier fee system to accommodate developers who choose to use alternative payment methods.

“The European Commission is requiring Apple to make a series of additional changes to the App Store,” Apple said in a statement. “We disagree with this outcome and plan to appeal.”

The European Commission acknowledged Apple’s announcement and stated it “will now assess these new business terms for DMA compliance,” referring to the Digital Markets Act.

The DMA aims to curb the market dominance of major tech companies, with potential fines of up to 10% of their global annual revenue for non-compliance.

One of the DMA’s key provisions requires developers to inform customers of cheaper purchasing options and provide direct access to those offers.

Apple’s previous restrictions, which blocked developers from steering users to external payment channels, had drawn criticism from several companies, including Spotify, which removed its in-app payment feature to avoid paying commissions of up to 30% on digital subscriptions through iOS.