Apple Inc. (AAPL, Financial) has revised its App Store policies in the European Union to avoid escalating fines for violating the EU's digital competition laws. This move comes after the iPhone maker was fined €50 million (approximately $58.5 million) by the European Commission for preventing app developers from directing users to cheaper purchasing options outside the App Store. Apple was given a 60-day deadline to make necessary changes, which has now expired, risking additional periodic fines.
The updated terms will make it easier for app developers to guide users to better deals on digital products and alternative payment options outside the Apple App Store, including other websites, apps, or alternative app stores. Additionally, Apple will introduce a two-tier fee system to accommodate developers who prefer alternative payment methods.
Apple stated its disagreement with the EU's requirements and plans to appeal. The European Commission has acknowledged Apple's statement and will assess whether the new commercial terms comply with the Digital Markets Act (DMA), which aims to curb the power of large tech companies. Violators could face fines up to 10% of their global annual revenue.
