The clock is ticking for Apple. It has just one month to revamp its App Store rules to comply with the European Union’s Digital Markets Act (DMA). If it fails, more fines are on the horizon.
At the heart of the issue is the DMA’s requirement that companies like Apple must allow developers to inform users about external payment options. The European Commission fined Apple €500 million in April for not meeting these conditions. Now, the tech giant must pay the fine and fix its practices by the end of June or face “periodic penalty payments” until it complies.
The Commission’s statement made it clear that Apple’s updated rules are still insufficient. While developers can link to external payment options, they can only do so under strict controls, such as using a single approved URL and paying a 27% fee on purchases made outside the App Store. These measures contradict the DMA, which demands that Apple let developers communicate and transact freely with users acquired through its platform.
A month to get it right
Apple claims it acted in good faith and that the novelty of the regulation should exempt it from penalties. However, the Commission disagrees, arguing that Apple’s interpretations distort the DMA’s clear language. The decision emphasizes that developers must be able to direct users to alternative purchase methods “freely,” and Apple’s current fee structure and restrictions do not allow for this.
The Commission also stated that Apple’s limitations on in-app promotions, pop-ups, and contract options hinder the law’s intention. The company’s technical and contractual design continues to control how developers interact with their users, despite the DMA requiring the opposite. According to the Commission’s decision document, “none of Apple’s arguments for not imposing a fine, or for reducing the fine, are convincing.”
What’s next for Apple?
Apple plans to appeal the decision, accusing the EU of unfair treatment. However, the appeal process won’t stop the clock. Apple still needs to implement changes by the end of June or face additional fines. As confirmed by the European Commission’s April decision, the company is legally obligated to comply with the DMA’s guidance obligations without further delay.
- Pay the €500 million fine
- Update App Store rules to comply with the DMA by June 30
- Allow developers to inform users about external payment options without restrictions
The European Commission’s decision sets a precedent for tech companies operating in the EU. It’s a reminder that companies must prioritize fair competition and user choice in their business practices. As the deadline looms, Apple must decide how to proceed and whether to continue its appeal. One thing is certain – the EU will be watching closely.