Apple (AAPL, Financial) has revised its App Store policies in the European Union to avert escalating fines under the EU's digital competition regulations. This move follows a €500 million fine imposed on the company in April for restricting developers from recommending cheaper alternatives outside Apple's App Store. The European Commission had given Apple a 60-day deadline to comply to avoid additional fines. This deadline has now passed.
The policy changes by Apple will allow developers to more easily recommend digital products and payment options outside of Apple's ecosystem, including other websites and app stores. Additionally, Apple is introducing a two-tier fee system to facilitate developers wishing to utilize alternative payment methods.
Apple stated, "The European Commission has requested Apple to implement additional modifications to the App Store. We disagree with this outcome and plan to appeal." The European Commission will now assess whether these new commercial terms align with the EU's Digital Markets Act (DMA). The DMA aims to limit the power of large tech companies, with potential fines reaching up to 10% of global revenue.
Spotify (SPOT) is one company that opposed Apple's restrictions and removed its in-app payment options to avoid a 30% commission on iOS purchases.
