Apple has shifted its App Store strategy in the European Union in response to mounting regulatory pressure under the EU’s Digital Markets Act (DMA). The tech giant announced a new fee structure, allowing developers more freedom to direct users to alternative payment systems — but with significant caveats.
Apple will now charge a 20 percent commission on purchases made through its App Store, with the rate dropping to 13 percent for small businesses enrolled in Apple’s developer program. For developers that steer users to make payments outside the App Store, Apple will impose a service fee ranging from 5 percent to 15 percent, depending on the arrangement.
This change marks a significant departure from Apple’s long-standing policy of tightly controlling in-app payments. Developers can now include multiple external links to their own payment platforms — previously a major friction point for app makers and regulators, Reuters news report said.
The policy revision comes after the European Commission fined Apple €500 million ($580 million) in April and gave it 60 days to comply with DMA rules or face daily fines of up to €50 million. In its announcement, Apple made clear that while it disagrees with the EU’s position and intends to appeal, it is implementing the changes to avoid further penalties.
Critics, including Epic Games CEO Tim Sweeney, argue that the changes do not go far enough, calling the updated rules a “mockery of fair competition,” claiming developers who use alternative payment methods remain commercially disadvantaged.
App Store support
In 2024, the global App Store ecosystem generated $1.3 trillion in developer billings and sales. More than 90 percent of these billings and sales went directly to developers without Apple collecting any commission. The ecosystem’s billings and sales have more than doubled over the past five years across key markets including the U.S., Europe, and China. Additionally, the App Store recorded over 813 million average weekly visitors.
Apple earlier announced that its App Store ecosystem in the U.S. generated $406 billion in developer billings and sales in 2024, according to a study by Boston University and Analysis Group. Notably, over 90 percent of this revenue was commission-free for developers. The ecosystem has nearly tripled in size since 2019, and earnings for U.S. developers have more than doubled. Small developers saw a 76 percent increase in earnings between 2021 and 2024.
The European Commission will now evaluate whether Apple’s adjustments satisfy DMA requirements, and has invited feedback from developers and market stakeholders before deciding on further action.
Rajani Baburajan