Apple rejigs App Store rules to stave off daily EU fines

Apple has started to roll out a series of changes to its rules for app developers, the firm announced Thursday as it seeks to stave off a new round of EU fines.

The Cupertino-based company faced a Thursday evening deadline to act on a cease-and-desist order issued by the European Commission in April or face daily fines for breaking the EU’s Big Tech competition rules. The EU executive already fined the firm €500 million.

Apple’s rules for app developers like Epic Games and Match Group — in particular those governing how such developers can transact with their customers — have been under EU scrutiny for the past year. 

The EU executive said in April that Apple’s rules, which were revised last year, were in breach of the Digital Markets Act. Separately, Apple faces further scrutiny under the DMA concerning the tolls it charges on transactions conducted via the App Store.

App developers will from Thursday evening face fewer limitations on how they communicate with users, according to Apple. The firm said it will reduce the number of warning labels — billed by consumer groups as “scare screens” — that users have to navigate.

The company is also restructuring the commissions it tacks onto on-device transactions, another major point of contention with the EU executive.

Developers who wish to avoid Apple’s fees for App Store transactions will now face a baseline 2 percent fee, and then a further set of charges depending on what App Store services they wish to use. 

Developers who wish to avoid Apple’s fees for App Store transactions will now face a baseline 2 percent fee. | Oliver Hoslet/EPA

Apple has warned, however, that apps that go for the most basic option may find their users face a “degraded experience,” compared with other App Store services.

Apple said that its new plan addresses the Commission’s concerns, even though the company disputes the underlying decision that led to the initial fine and plans to file an appeal by July 7.

“The Commission takes note of Apple’s announcement and will now assess these new business terms for DMA compliance,” said Commission spokesperson Lea Zuber. “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.”