Apple reveals complex system of App Store fees to avoid EU fine of 500 million euro

Apple Thursday made changes to its App Store European policies, saying it believes the caller rules volition assistance the institution debar a good of 500 cardinal euro ($585 million) from the EU for violating the Digital Markets Act.

The new policies are a complicated strategy of fees and programs for app makers, with immoderate developers present paying 3 abstracted fees for 1 download. Apple besides is going to present a caller acceptable of rules for each app developers successful Europe, which includes a interest called the "core exertion commission" of 5% connected each integer purchases made extracurricular the App Store.

The changes Apple announced are not a implicit departure from the company's erstwhile argumentation that drew the European Commission's attraction successful the archetypal place.

Apple said it did not privation to marque the changes but was forced to by the European Commission's regulations, which threatened fines of up to 50 cardinal euros per day. Apple said it believed its program is successful compliance with the DMA and that it volition debar fines.

"The European Commission is requiring Apple to marque a bid of further changes to the App Store," an Apple spokesperson said successful a statement. "We disagree with this result and program to appeal."

A spokesperson for the European Commission did not accidental that Apple was nary longer taxable to the fine. He said successful a connection that the EC is looking astatine Apple's caller presumption to spot if the institution is successful compliance.

"As portion of this appraisal the Commission considers it peculiarly important to get the views of marketplace operators and funny 3rd parties earlier deciding connected adjacent steps," the spokesperson said successful a statement.

The saga successful Brussels is the latest illustration of Apple fiercely defending its App Store policies, a cardinal root of nett for the iPhone shaper done fees of betwixt 15% and 30% connected downloads done its App Store.

It besides shows that Apple is continuing to assertion it is owed a committee erstwhile iPhone apps nexus to websites for integer purchases overseas contempt a caller tribunal ruling that barred the signifier successful the U.S.

Under the Digital Markets Act, Apple was required to let app developers much choices for however they administer and beforehand their apps. In particular, developers are nary longer prohibited from telling their users astir cheaper alternatives to Apple's App Store, a signifier called "steering" by regulators.

In aboriginal 2024, Apple announced its changes, including a 50 cent interest connected off-platform app downloads.

Critics, including Sweden's Spotify, pushed backmost connected Apple's projected changes, saying that the tech steadfast chose an attack that violated the tone of the rules, and that its fees and commissions situation the viability of the alternate billing system. The European Commission investigated for a year, and it said connected Thursday that it would again question feedback from Apple's critics.

"From the beginning, Apple has been wide that they didn't similar the thought of abiding by the DMA," Spotify said past year.

Epic Games CEO Tim Sweeney, whose institution successfully changed Apple's steering rules successful the U.S. earlier this year, accused Apple past twelvemonth of "malicious compliance" successful its attack to the DMA. Sweeney said Apple was looking to comply with the missive of the instrumentality but marque it hard for developers to payment from the changes.

"Apps with competing payments are not lone taxed but commercially crippled successful the App Store," Sweeney posted connected societal media connected Thursday.

The European Commission announced the 500 cardinal euro good successful April. The committee astatine the clip said that the tech institution mightiness inactive beryllium capable to marque changes to debar the fine.

Apple's restrictions connected steering successful the United States were tossed earlier this year, pursuing a tribunal bid successful the long-running Epic Games case. A justice successful California found that Apple had purposely misled the tribunal astir its steering concessions successful the United States and instructed it to instantly halt asking charging a interest oregon committee connected for outer downloads.

The bid is currently successful effect successful the United States arsenic it is being appealed and has already shifted the economics of app development. As a result, companies similar Amazon and Spotify successful the U.S. tin nonstop customers to their ain websites and debar Apple's 15% to 30% commission.

In the U.S., Amazon's iPhone Kindle app present shows an orangish "Get Book" fastener that links to Amazon.com.

This breaking quality communicative is being updated.

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