Apple makes changes to its App Store due to potential EU fines

Apple has announced further changes to the rules of its App Store in the European Union in an attempt to avoid billions of euros in potential fines due to new strict laws aimed at curbing the power of the largest tech companies.

Thursday’s move by Apple marks the fourth time the company has changed its business terms in the EU since it first complied with the Digital Markets Act that the EU enacted earlier this year.

The new rules force Apple to allow access to iPhones for competing app stores and payment methods. The tech giant revealed its plans on Thursday to implement changes to its business in the EU that would make it easier and cheaper for developers to direct users to purchase outside the App Store. The measures, expected to be included in a software update this fall, include a new fee structure and relaxed rules regarding how developers can display links within their apps.

Some app developers have been campaigning for years to be allowed to direct customers to their own websites, where purchases could be more profitable for developers or cheaper for consumers as they would not be subject to Apple’s App Store fees.

A spokesperson for the European Commission confirmed Apple’s announcement, stating that the Commission will `assess Apple’s potential changes in compliance measures, also taking into account all market feedback, especially from developers.`

Tech companies had to comply with the rules of the Act by March. The European Commission opened investigations into non-compliance against Alphabet and Meta, the owners of Google, as well as Apple in an effort to tackle the dominance of the largest online platforms. If found guilty of violating the rules, companies face hefty fines that could amount to up to 10 percent of their global revenue, meaning any fine for Apple could reach tens of billions of dollars.

An Apple representative confirmed that the update is designed to respond to preliminary findings from the EU in June, where the regulator warned that Apple’s business terms appear to restrict developers from directing users outside the Apple Store.

Apple stated that its new business terms for developers will allow them to freely design promotions and offers within their apps. The updated fee structure is meanwhile aimed at addressing EU concerns that Apple charges developers more than necessary for acquiring new customers through the App Store while selling them digital goods outside of it.

Apple’s new `governing` terms and conditions will apply to all developers from the EU, regardless of whether they choose to use alternative stores and payment options or remain within its ecosystem.

Developers who stay in Apple’s App Store are subject to the tech giant’s standard commissions for digital purchases, which range from 15 to 30 percent. Critics have said that Apple’s strict control of its system represents an abuse of monopoly. Meanwhile, the EU has opened a separate investigation into Apple’s `core technology fee` of 0.50 euros for each download of a new app through alternative stores.

Apple’s latest changes do not eliminate that fee, and the EU has not yet completed its investigation. Apple claims that its rules ensure a safe platform for users and has criticized the Digital Markets Act for undermining privacy and security protections.

In June, the company announced that it was delaying the launch of its features `Apple Intelligence` in the EU due to concerns over a separate part of the regulation that requires it to make its products available to third parties.

Apple’s `governing` rules have also been under pressure in the US. A federal judge in California is reviewing whether Apple’s rules comply with a ban issued in 2021 after Epic Games sued the company for antitrust violations.