Apple on Thursday overhauled its App Store rules and fees in the European Union after the bloc's antitrust regulators ordered it to remove commercial barriers that prevent developers from directing customers to external payment options.
The iPhone maker announced that developers will now pay a 20% processing fee for purchases made through the App Store, though fees could drop as low as 13% for participants in Apple's small-business program. Developers who steer customers outside the App Store for payment will face a minimum fee of 5% and at most 15%, while gaining the ability to use unlimited links to external payment systems.
The modifications aim to help Apple avoid a €500 million ($570 million) fine threatened by EU antitrust regulators in April for violating the bloc's Digital Markets Act1. The European Commission had given Apple until June 26 to comply with regulations or face escalating penalties that could reach up to 5% of the company's average daily global revenue2.
"The European Commission is requiring Apple to make a series of additional changes to the App Store. We disagree with this outcome and plan to appeal," Apple said in a statement1.
The original fine centered on Apple's App Store policies that blocked developers from communicating with users about alternative payment options outside the platform3. Under Apple's previous EU guidelines, developers were permitted only one external link to their website, with Apple charging a 27% commission on purchases made through that link3.
The dispute reflects growing friction between Brussels and Washington over technology regulation. President Trump has characterized EU fines against American tech companies as "overseas extortion" and threatened to impose tariffs on Europe in response1. In February, Trump issued a directive titled "Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties"1.
The timing coincides with Trump's visit to Europe for a NATO summit and a looming July 9 deadline for Brussels and Washington to reach a trade agreement2. The EU's tech regulations have emerged as a major flashpoint between the two sides2.
Apple joins Meta as companies fined under the Digital Markets Act, with the social media giant receiving a €200 million penalty for its "pay or consent" advertising model3. According to Bloomberg, Apple had been in "eleventh-hour negotiations" with European regulators about the changes in hopes of avoiding escalating fines1.
The European Commission indicated it would conduct a preliminary analysis of Apple's changes before determining whether additional penalties are warranted3.
