BRUSSELS, Aug. 20 (Xinhua) -- U.S. tech company Apple on Tuesday announced changes to its rules, including a revamped fee structure for apps distributed through alternative marketplaces or the web, following what the company called "close collaboration with the European Commission."
The move marks the latest development in more than two years of regulatory disputes between Apple and the European Union (EU), showing how the bloc's Digital Markets Act (DMA) is reshaping the business practices of major technology platforms.
However, whether the changes will lead to more effective competition remains to be seen.
REVAMPING FEES FOR ALTERNATIVE DISTRIBUTION
Under Apple's new terms, which take effect on Oct. 1, all developers distributing apps in the EU will move to a single set of business terms.
The Core Technology Fee (CTF), charged for each installation, will be replaced by the Core Technology Commission (CTC), a 5 percent commission on digital transactions in apps distributed outside the App Store. Apple will also eliminate its initial acquisition fee and store services fee.
For App Store apps that use Apple In-App Purchase, the standard commission is 26 percent. Apps using alternative payment processing will face a 20 percent commission, while those linking users to external purchasing channels will be charged 15 percent.
Apple is also expanding eligibility to operate alternative app marketplaces and web distribution, although apps distributed outside the App Store must continue to undergo its Notarization review.
A European Commission spokesperson welcomed the changes, saying they "follow a close dialogue between the Commission and Apple," according to Eunews.
"Following today's announcement, the Commission will monitor Apple's effective implementation of the new terms," the spokesperson said.
Paulo Trezentos, CEO of alternative app store Aptoide, described Apple's announcement as "one of the most significant updates to its app distribution model since the Digital Markets Act came into force." Removing the CTF could help create fairer competition among developers relying on different business models, he said.
APPLE ADJUSTS AS EU CLOSES LOOPHOLES
The dispute dates to the early implementation of the DMA. Each time Apple adjusted its rules in response to EU requirements, the changes were accompanied by new terms that helped the company retain its market position.
In September 2023, the Commission designated Apple as a "gatekeeper" under the DMA, subjecting it to a series of obligations. In January 2024, Apple announced changes allowing alternative app marketplaces and payment processing options for EU users.
At the same time, it introduced new business terms, including a CTF of 0.5 euros (about 0.58 U.S. dollars) for each first annual installation above a threshold of 1 million for apps under the relevant terms.
In April 2025, the Commission found Apple in breach of the DMA's anti-steering obligation and fined it 500 million euros and ordered the company to remove the restrictions.
Apple subsequently relaxed restrictions on links to external purchasing channels but introduced a more complicated fee structure that included an initial acquisition fee and tiered store service fees.
The back-and-forth revealed a pattern: as the EU required Apple to open its ecosystem, the company introduced new mechanisms to retain some control. EU regulators, in turn, pushed the compliance test further from whether third parties could enter Apple's ecosystem to whether they could compete effectively inside it.
Alex Moore, executive director of Open Web Advocacy, expressed skepticism about the latest changes. He argued that Apple's ability to charge a 5-percent commission on digital transactions for apps distributed through alternative marketplaces or the web would still give it a major advantage over competitors.
FROM RULE CHANGES TO MARKET OUTCOMES
The Commission's pledge to monitor the implementation of Apple's latest terms also points to an evolving focus in DMA enforcement.
In its first review of the DMA, released in April, the Commission said the law had already had a positive impact on the fairness and contestability of EU digital markets but had not yet achieved its full potential.
Some gatekeepers were taking measures to sidestep their obligations, while technical difficulties were preventing businesses from fully benefiting from DMA remedies, the Commission said.
The focus would remain on "effective enforcement, regulatory dialogue" and greater transparency rather than major legislative changes, it said.
Future scrutiny under the DMA is therefore likely to focus increasingly on market outcomes, according to Politico. Key questions include whether alternative app stores can attract users, whether developers can afford to use alternative distribution channels and whether new fee structures create additional barriers to competition.
The Apple case provides an important test. The DMA has shown that it can prompt one of the world's largest technology companies to alter its business rules. Whether those changes foster viable new competitors will be a more demanding measure of the law's effectiveness. Enditem
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