Apple overhauls EU App Store rules following penalty

The Verge

5 hours ago

Apple has introduced new App Store changes in the EU in an attempt to avoid being further penalized under the European Union's Digital Markets Act (DMA). On Thursday, the company announced a new tier system for its Store Services fee that's applied to purchases made outside apps, and it will only give developers access to the full set of App Store features if they give Apple a larger commission.
Tier 1 of the Store Services fee will provide developers with only basic App Store features for a cheaper, 5 percent commission on in-app purchases, including app reviews, privacy nutrition labels, and access to Apple Support. This tier lacks many of the features developers benefit from on the App Store today, including automatic app updates, automatic app downloads, and other tools that could help developers promote their app.
Epic Games CEO Tim Sweeney, whose lawsuit against Apple resulted in a court order preventing Apple from taking a commission on purchases made outside the App Store in the US, has already called out limitations for developers who choose the cheaper tier.
For full access to the App Store features, developers will need to use Tier 2 of the Store Services fee, which comes with a 13 percent commission. Apps on the App Store will be on Tier 2 by default, but developers can move their apps to Tier 1.
Apple is also introducing a new fee: the Core Technology Commission. With the update, Apple will take a 5 percent commission on outside purchases made in apps distributed on the App Store. However, developers who signed on to Apple's alternate business terms will continue to pay the Core Technology Fee (CTF), a €0.50 per download fee that applies to apps for each annual install over 1 million.
The iPhone maker says that on January 1st, 2026, it's going to move to a 'single business model' for developers in the EU. That means it's going to transition the Core Technology Fee to the 5 percent Core Technology Commission on digital goods and services sold on the App Store and alternative marketplaces.
The changes come in response to the €500 million (about $570 million) penalty the EU served Apple with on April 23rd after ruling that its App Store 'anti-steering' practices — which restrict how developers can direct users to make external purchases — violated DMA rules. Apple will face interest payments on the $570 million fine if it fails to pay it by next month. The EU also issued preliminary findings for a separate DMA probe into Apple's Core Technology Fee and other restrictions for alternative iOS app stores, ruling that Apple failed to demonstrate they were 'necessary and proportionate.'
Apple still plans on appealing the penalty. 'The European Commission is requiring Apple to make a series of additional changes to the App Store,' the company said in a statement to 9to5Mac. 'We disagree with this outcome and plan to appeal.' Apple didn't immediately respond to The Verge's request for comment.
The EU Commission will now assess the changes that Apple has proposed before making a final decision on additional non-compliance fines.