Apple has implemented sweeping changes to its App Store policies across the European Union to comply with the bloc's Digital Markets Act (DMA) and avert additional fines, after being hit with a €500 million ($580 million) penalty earlier this year for anticompetitive practices. The move comes on the heels of a 60-day deadline set by the European Commission, which expired Thursday, and threatens daily fines of up to 5% of Apple's global daily revenue-roughly €50 million.
Under the new terms, Apple will charge developers a 20% processing fee for purchases made through the App Store, with the rate dropping to 13% under Apple's small business program. Developers that steer customers to external payment platforms will be charged a fee ranging between 5% and 15%, depending on the program. Apple also announced it will allow developers to embed an unlimited number of outbound links directing users to alternative purchasing options.
"These tariffs represent a new and meaningful cost headwind," said Matthew Friend, Nike's chief financial officer. "With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1bn. We intend to fully mitigate the impact of these headwinds over time."
Apple confirmed its compliance actions but said it does not agree with the Commission's ruling. "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 stated.
The European Commission responded that it will now evaluate Apple's updated terms. "As part of this assessment the Commission considers it particularly important to obtain the views of market operators and interested third parties before deciding on next steps," it said.
The changes arrive after the Commission penalized Apple in April for prohibiting developers from informing users about more affordable purchasing options outside the App Store. That restriction had drawn vocal opposition from major digital platforms, including Spotify, which removed its in-app subscription feature to avoid Apple's commission fees of up to 30%.
Epic Games CEO Tim Sweeney, a long-time critic of Apple's App Store policies, blasted the company's revisions. "Apps with competing payments are not only taxed but commercially crippled in the App Store," Sweeney wrote on X, calling the new rules "a mockery of fair competition in digital markets."
