Apple is proactively making changes to its App Store in hopes of avoiding a fine. The changes come specifically for Europe, where the European Commission warned Apple for violating the Digital Markets Act (DMA).
Europe said Apple was not adequately informing App Store users about promotions in external channels. That was due to a restriction on app developers, which Apple has now removed. European developers will now be able to direct app users to offers and promotions outside the App Store.
In addition, the system for transactions through such links is changing. Apple previously devised a system to earn a penny from in-app purchases after the DMA went into effect. The legislation should give developers the freedom to offer an alternative payment system, which, for Apple, would result in less income. The company thought otherwise, and Apple is earning even with applications not installed on an iPhone through the App Store. The policy dictates that companies pay 50 cents per app installed on an Apple device. The new rules around compensation are not yet clear.
As of iOS 18
The policy changes spit out competitors from the first second. After the DMA became punitive on March 7, 2024, the European Commission sent a warning about the illegal changes.
Europe is now in the process of making a decision on the violations. Apple is trying to push that process in a favorable direction by proactively heeding the earlier warning. To change the policy, the company does wait until the release of its new operating system, iOS 18, which comes out in September.
It is not out of the question that Apple may still receive a fine despite the changes. This could amount to 10 percent of total sales. The decision on the fine will follow by March 2025.
Also read: Apple makes sideloading more dangerous than necessary to favour its App Store