Apple updates EU App Store rules after regulatory penalty
▼ Summary
– Apple introduced a tiered commission system for the EU App Store, offering basic features for a 5% fee (Tier 1) or full features for a 13% fee (Tier 2).
– Epic Games CEO Tim Sweeney criticized the limitations of Tier 1, which excludes features like automatic app updates and downloads.
– Apple added a Core Technology Commission (5% on outside purchases) and will transition to a single business model by 2026, replacing the Core Technology Fee.
– The changes follow a €500 million EU penalty for violating DMA rules, with Apple planning to appeal the decision.
– The EU Commission will review Apple’s proposed changes before deciding on further fines for non-compliance.
Apple has rolled out significant modifications to its App Store policies in the European Union, aiming to align with regulatory demands under the Digital Markets Act (DMA). The tech giant unveiled a revised fee structure this week, introducing a two-tier system that ties developer access to App Store features with varying commission rates.
Under Tier 1, developers opting for a reduced 5% commission gain only basic functionalities, such as app reviews, privacy labels, and Apple Support. However, this tier excludes critical tools like automatic updates, downloads, and promotional features that many developers rely on. Epic Games CEO Tim Sweeney, a vocal critic of Apple’s policies, has already raised concerns about the limitations imposed on developers who choose this lower-cost option.
For full access to the App Store’s suite of tools, developers must select Tier 2, which carries a 13% commission. While apps default to this tier, developers have the flexibility to downgrade to Tier 1 if they prefer the lower fee structure.
In addition to these changes, Apple is implementing a Core Technology Commission, taking a 5% cut on external purchases made through apps distributed via the App Store. Developers who previously agreed to Apple’s alternative terms will still be subject to the Core Technology Fee (CTF), a €0.50 charge per download after the first million annual installs.
By 2026, Apple plans to consolidate its EU business model, replacing the CTF with the 5% Core Technology Commission for digital transactions across both the App Store and third-party marketplaces.
These adjustments follow a €500 million fine imposed by the EU in April, citing Apple’s “anti-steering” practices as violations of DMA regulations. The company has until next month to settle the penalty or face additional interest charges. Meanwhile, EU regulators continue scrutinizing Apple’s Core Technology Fee and restrictions on alternative app stores, questioning whether these measures are justified.
Apple has signaled its intent to challenge the ruling, stating it disagrees with the EU’s conclusions. The European Commission will now evaluate the proposed changes before deciding on further enforcement actions.
(Source: The Verge)
