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Apple has announced further changes to its App Store rules in the EU in an attempt to avoid billions of euros in potential fines under stringent new legislation aimed at reining in the power of the biggest technology companies.
The move on Thursday is the fourth time the iPhone maker has made changes to its EU business terms since first moving to comply with the bloc’s Digital Markets Act earlier this year.
The rules force Apple to open up the iPhone to rival app stores and payment methods. The tech giant unveiled its plans to introduce changes to its EU business that would make it easier and cheaper for developers to direct users to make purchases outside its App Store.
The measures, which are due in a software update in the autumn, include a new fee structure and eases the rules around how developers can display links within their apps.
Some app makers have campaigned for years to be allowed to point customers to their own websites, where purchases could be more profitable for developers or cheaper for consumers because they are not subject to Apple’s App Store fees.
A European Commission spokesperson acknowledged Apple’s announcement, saying that “we will assess Apple’s eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers”.
Spotify, a longtime critic of Apple’s App Store policies, said the changes were “deliberately confusing” and seemed to “blatantly disregard” the requirements of the DMA, while lobby group the Coalition for App Fairness said it was “yet another blatant move by Apple to retain their market power”.
The tech companies had to comply with the DMA rules by March. The European Commission, the bloc’s executive arm, that same month opened non-compliance investigations against Google owner Alphabet and Meta as well as Apple in its push to tackle the dominance of the biggest online platforms.
If found guilty of non-compliance, companies face hefty fines that could amount to up to 10 per cent of their global turnover, meaning any fine for Apple could run into tens of billions of dollars.
An Apple representative confirmed the update was designed to address the EU’s preliminary findings in June, where the regulator warned Apple’s business terms appeared to restrict developers from steering users outside of the App Store.
In the blog post, Apple said its new business terms for developers would allow them to freely design promotions and offers within their apps. The updated fee structure is meanwhile aimed at addressing the EU’s concerns that Apple charges more than necessary for developers that acquire new customers via the App Store but sell them digital goods outside of it.
Apple’s “steering” terms and conditions will apply to all EU developers, regardless of whether they have opted to use alternative stores and payment options or stay within its ecosystem.
Developers who stay inside Apple’s App Store are subject to the tech giant’s standard commission fees on digital purchases, which range from 15-30 per cent. Critics have said Apple’s tight control of its ecosystem amounts to monopoly abuse.
The EU has meanwhile opened a separate probe into Apple’s “core technology fee” of €0.50 for each download of a new app via alternative stores.
Apple’s latest changes do not remove that fee. The EU has not yet completed its investigation.
Apple says its rules ensure a safe and secure platform for its users, and has criticised the DMA for undermining its privacy and security safeguards.
In June the company announced it was delaying the launch of its “Apple Intelligence” features in the EU amid concerns about a separate part of the regulation requiring it to make its products interoperable with third parties.
The iPhone maker’s “steering” rules have also come under pressure in the US. A California federal judge is reviewing whether Apple’s rules comply with an injunction issued in 2021 after Epic Games sued the company for antitrust violations.
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