Apple is adding App Store fees in Europe to dodge a $585 million fine

Apple has revamped its App Store policies in the European Union in a last-minute attempt to avoid escalating fines under the bloc’s sweeping digital competition regulations.

The changes come as Apple’s 60-day deadline expired Thursday following a 500 million euro ($585 million) penalty in April. The European Commission fined the company for preventing app developers from directing users to cheaper payment options outside of its App Store.

Developers can now steer users to better deals

Under the new policies, Apple will make it easier for developers to point users to alternative ways to pay for subscriptions and digital purchases, including other websites, apps, or alternative app stores. Previously, strict restrictions prevented such “steering,” which regulators said harmed consumer choice.

“The European Commission is requiring Apple to make a series of additional changes to the App Store,” Apple said in a statement. “We disagree with this outcome and plan to appeal.”

New fees replace old restrictions

Instead of getting rid of fees altogether, Apple is introducing a new two-tier fee structure for developers who use external payment links. The system includes an initial acquisition fee of 2% and a store services fee ranging from 5% to 13%, depending on the developer’s tier. Developers using external payment links will also pay a 5% “Core Technology Commission” on digital purchases made outside the App Store.

Apple said these fees reflect the value of its tools, technology, and app distribution services.

Critics call Apple’s move ‘malicious compliance’

Despite the changes, critics argue Apple’s approach violates the spirit of the EU’s Digital Markets Act (DMA), which aims to reduce Big Tech’s dominance through fines of up to 10% of global revenue.

In a tweet Thursday, Epic Games CEO Tim Sweeney called the changes “blatantly unlawful” and a form of “malicious compliance,” accusing Apple of taxing apps with competing payments and “commercially crippling” them within the App Store. Spotify has also long criticized Apple’s restrictions, removing its in-app payment option years ago to avoid commissions of up to 30%.

Regulators will review Apple’s new terms

The European Commission said Thursday it will assess whether Apple’s changes are sufficient to comply with the DMA and avoid additional fines, which could reach up to 50 million euros per day for ongoing violations.

“This is not the final word,” a Commission spokesperson told CNBC, adding that regulators will seek feedback from market participants before deciding next steps.

Apple’s fight over its App Store model extends beyond Europe. Earlier this year, a U.S. court barred Apple from preventing developers from directing users to external payment options following a legal battle with Epic Games. Companies like Amazon and Spotify have since added links in their U.S. apps to bypass Apple’s fees.

For now, Apple maintains its revised policies will keep it compliant in Europe, but with regulators and rivals still unconvinced, the company’s profitable App Store remains under global scrutiny.