Apple adds complex app store fees to avoid EU fine

Apple has updated its App Store policies in Europe to comply with the European Union’s Digital Markets Act (DMA) and avoid a €500 million (US$584.6 million) fine.

The new policies include a 5% “core technology commission” fee on digital purchases made outside the App Store.

This adds complexity to the fee structure, with some developers now facing multiple charges for a single download.

Apple disagrees with the regulations but is complying to avoid daily fines, while also planning to appeal the EU’s requirements.

An Apple spokesperson confirmed the company’s plan to appeal the requirements set by the European Commission.

Spotify and Epic Games criticized Apple’s changes as undermining the DMA, citing concerns about added fees.

This update follows prior legal pressure in the US, and EU regulators are reviewing whether Apple’s changes meet DMA standards.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Apple’s pattern of regulatory resistance reveals its app store business model defense strategy

Apple’s resistance to the Digital Markets Act follows a consistent pattern in how the company responds to European regulators.

When facing the €13 billion tax ruling in 2016, Apple CEO Tim Cook described it as “maddening” and politically motivated, while pursuing years of appeals alongside the Irish government 1.

The current stance on app store regulations mirrors this approach, implementing technical compliance while introducing new fees that preserve core revenue streams and appealing the decision 2.

This pattern highlights Apple’s strategic priority of defending its app store business model, which has been a key profit driver through its 15-30% commission structure that generated an estimated $85 billion in 2022 alone 3.

The new “core technology commission” of 5% demonstrates how Apple continues to assert that it deserves compensation for iOS distribution even when transactions occur outside its payment system, despite court rulings challenging this position.