The tech giant announced new business terms for App Store apps that facilitate and promote transactions for digital goods or services.
Apple, Inc. (AAPL) announced a series of additional changes to its App Store policy to skirt the 500-million-euro ($585 million) fine imposed by the commission in late April.
The fine followed the EU’s determination that Apple breached its “anti-steering” obligation under the Digital Markets Act (DMA). The act dictates that apps downloaded via Apple App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers, and allow them to make purchases.
Apple’s stock has been one of the worst-performing Magnificent Seven stocks this year, having lost about 20%.
The Tim Cook-led unveiled updated App Store terms on Thursday, allowing European app developers to communicate and promote offers for the purchase of digital goods or services available at a destination of their choice.
The tech giant announced new business terms for App Store apps that communicate and promote offers for digital goods or services for those transactions. These included an initial acquisition fee of 2% and a store services fee of 5% or 13% depending on the tier the developer chooses.
The company will charge a core technology commission (CTC) for apps on the StoreKit External Purchase Link Entitlement (EU) Addendum.
The CTC reflects the value Apple provides developers through ongoing investments in the tools, technologies, and services that enable them to build and share innovative apps with users, it said.
Apple noted that music streaming apps on the App Store in the European Economic Area (EEA) that want to use the Music Streaming Services Entitlement (EEA) can use these options.
Beginning next year, the tech giant plans to adopt a single business model in the EU for all developers, transitioning from the Core Technology Fee (CTF) to the CTC for digital goods or services.
The CTC will apply to digital goods or services sold by apps distributed from the App Store, Web Distribution, and/or alternative marketplaces.
Apple also said its iPhone and iPad operating systems would provide an updated user experience in the EU for installing alternative marketplaces or apps from a developer’s website, beginning with the iOS 18.6 and iPadOS 18.6.
Later this year, the company will provide an API to allow developers to initiate the download of alternative distributed apps they publish from within their app.
Fortnite developer Epic Games’ founder and CEO Tim Sweeney called Apple’s new DMA “a malicious compliance scheme [that] is blatantly unlawful in both Europe and the United States and makes a mockery of fair competition in digital markets.”
“Apps with competing payments are not only taxed but commercially crippled in the App Store.”
Epic Games recently won a legal victory over Apple as a judge determined that the latter violated an injunction that prohibited it from imposing anti-competitive pricing.
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