Apple has updated its App Store policies in the European Union in an effort to avoid further fines under the bloc’s digital competition rules. This move comes after Apple was hit with a 500 million euro ($585 million) penalty in April for blocking app developers from directing users to cheaper purchasing options outside of its App Store. The EU had given Apple a 60-day deadline, which expired Thursday, to make changes and avoid ongoing fines.
The new policies will allow app makers to guide users to alternative payment methods and external websites, apps, or other app stores where they might find better deals. Apple is also introducing a two-tier fee system to support developers who choose to use these alternative payment options.
Apple stated that it disagrees with the EU’s decision and plans to appeal, while the European Commission said it will review Apple’s new terms to ensure they comply with the Digital Markets Act (DMA). This legislation aims to limit the power of major tech firms, with penalties reaching up to 10% of a company’s global annual revenue.
The DMA requires developers to notify customers about lower-cost options and enable them to access these offers. Apple’s previous rules, which prevented developers from directing users to external payment channels, faced strong opposition from companies like Spotify, which stopped offering in-app payments to avoid paying commissions of up to 30% on digital subscriptions sold through iOS.
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