Apple (NASDAQ:AAPL) announced changes today to its App Store for users in European Union nations to comply with the European Commission’s Digital Markets Act and avoid escalating financial penalties.
Starting today, developers with apps in the European Union storefronts of the App Store can promote offers for purchase of digital goods or services available at a destination of their choice.
“The destination can be a website, alternative app marketplace, or another app, and can be accessed outside the app or within the app via a web view or native experience,” Apple said.
Apple is also updating its business terms for app developers in the EU.
“By January 1, 2026, Apple plans to move to a single business model in the EU for all developers,” Apple said. “Under this single business model, Apple will transition from the Core Technology Fee to the CTC on digital goods or services.”
The CTC, or Core Technology Commission, will apply to digital goods or services sold by apps distributed from the App Store. What’s more, when Apple releases iOS 18.6 to the general public, EU users will be able to install alternative marketplaces or apps from a developer’s website.
In late April, the European Commission imposed a €500M, or $585M, fine on Apple for preventing app makers from pointing users to cheaper options outside its App Store. The fines can increase over time, with periodic penalties reaching up to 5% of a company’s average daily global revenue. Apple had 60 days to implement changes or else face the additional penalties.
Earlier this week, it was reported that Apple was in negotiations with regulators in Brussels regarding these changes.
Apple is one of the six large tech companies the European Commission has deemed as a “gatekeeper.”
“Gatekeepers are large digital platforms providing any of a pre-defined set of digital services, such as online search engines, app stores, and messenger services,” the Commission said.
The other gatekeepers include Google (GOOG)(GOOGL), Amazon (AMZN), Meta Platforms (META), Microsoft (MSFT) and ByteDance (BDNCE).
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