Apple Inc. (AAPL, Financial) has revised its terms and conditions for developers using its high-profit App Store within the European Union. This move aims to prevent further fines under the EU's digital antitrust laws. The European Commission previously ruled in April that Apple's terms violated the Digital Markets Act, a law designed to limit the market power of tech giants like Apple. The company was fined 500 million euros ($583 million) for imposing unfair obligations on developers, preventing them from directing customers to better deals outside the App Store.
The EU issued a "cease and desist" order to Apple, setting a 60-day deadline, which has now expired. Apple must comply with EU laws to avoid additional periodic fines, which could reach up to 5% of its global daily revenue. In response, Apple announced a series of adjustments to its App Store policies in Europe. These changes will offer developers more ways to direct users to discover and pay for better deals outside the App Store. Additionally, Apple introduced a new pricing model for developers who choose to guide customers via links or in-app purchases, including a tiered service fee for sales achieved through in-app promotions.
