Apple has announced a host of changes it is making in response to the demands of regulators in the EU. App developers in the region can now promote and link to offers for digital goods or services outside their app.
These promotions can be hosted on a website, an alternative app marketplace, or another app, and can be accessed outside or within the app. Apple says it is making these changes to comply with the EU’s Digital Markets Act (DMA), which seeks to level the playing field by limiting the influence of tech giants over smaller rivals.
Before this change, EU developers could only promote offers to their own websites using a single, static URL, and there were restrictions on features such as tracking parameters, redirects, and intermediate links. Apple now allows developers to include multiple destinations in their apps, enabling such features.
Apple makes it less scary for EU users to tap on external links
In addition, Apple is updating the user experience for EU users who install alternative app marketplaces or apps from a developer’s website, as opposed to the App Store, in iOS 18.6 and iPadOS 18.6. The disclosure sheet that appears when users tap an external link has been simplified, and they can opt out of seeing it in future interactions within the same trusted app.
Later this year, Apple will also provide an API that will allow developers to initiate the download of their non-App Store apps directly from within their own apps.
New fees for link-out payments
Finally, Apple has changed the fee structure for apps distributed on the App Store that use “link-outs.” This is when an in-app link directs the user to a web page to complete the transaction, or to an in-app alternative payment service provider.
The new link-out business terms include an initial acquisition fee, a store services fee, and, for certain apps, the Core Technology Commission (CTC). The CTC is, crucially, not the same as the Core Technology Fee (CTF).
Initial acquisition fee
A 2% fee that applies to any link-out sale made within the first six months after the user initially downloads the app from the App Store.
“The fee reflects the capabilities the App Store provides when connecting developers with customers in the EU,” Apple says.
Store services fee
The Store Services Fee, which compensates Apple for the “ongoing services and capabilities” it provides to app developers hosting on its App Store, is payable for all link-out sales made within a 12-month period from the date of installation.
Developers can choose from one of two tiers:
- Tier 1: A 5% fee in exchange for the limited set of App Store services, including app reviews, Apple Support, and other trust and safety features.
- Tier 2: A 13% fee in exchange for all services provided by the App Store, including automatic app updates.
Core Technology Commission
Developers on Apple’s standard EU business terms will pay the new CTC — a 5% commission on link-out sales — instead of the old CTF. Those on alternative business terms will continue paying the CTF, which is €0.50 for each app install over one million installs in the past 12 months. However, Apple says it will transition all apps to the CTC by Jan. 1, 2026.
“The CTC reflects value Apple provides developers through ongoing investments in the tools, technologies, and services that enable them to build and share innovative apps with users,” Apple said in its statement.
CTF was in response to DMA requirements, but EU was not impressed
Apple introduced the CTF in January 2024, along with its new business terms for EU developers, just before the DMA came into force. Because the new terms allowed app developers to steer users to alternative purchase options through link-outs, Apple needed a new way to recoup revenue it would otherwise have earned from in-app purchases. Therefore, it made sure any developer who used link-outs also paid a Core Technology Fee.
However, the Commission said the fees relating to link-outs went “beyond the possible remuneration for the initial acquisition of that end user facilitated by Apple.”
According to the DMA, the entire link-out transaction, from promotion to the actual sale, must be free from Apple’s fee, not just the developer’s ability to mention other purchasing options. It remains to be seen whether the EU will accept the changes made this week.
All these changes could be in response to a €500 million fine
Last month, the Commission announced that Apple remained non-compliant with the DMA one month after being fined €500 million. The fine was imposed because, despite previous changes, Apple did not allow app developers to freely steer users toward external purchasing options outside the App Store.
The EU found the requirements regarding the use of link-outs to be too restrictive. Developers must not simply be granted the theoretical ability to steer users, as Apple claimed the DMA requires; they must be able to do so in a practical and effective manner. Imposing restrictions or fees, such as the CTF, that discourage steering constitutes non-compliance.
Apple vs the Digital Markets Act
The DMA has been a point of contention for Apple since its enactment in September 2022. In September 2024, the antitrust watchdog initiated two proceedings under the DMA to push Apple to enhance interoperability between iOS, iPadOS, and third-party devices, and published some potential mitigations in March.
Apple formally appealed its requirements earlier this month, warning that granting third parties access to its technology stack could compromise privacy and security.
Nevertheless, Apple has made several adjustments to address regulatory concerns. Since early 2024, it has allowed EU users to delete pre-installed apps, made changes to the App Store, and introduced DMA-compliant Apple Intelligence. That’s not surprising, considering fines for noncompliance can be up to 10% of the company’s total worldwide turnover, rising to 20% in cases of repeated infringement.
This is not the only time Apple has bent to the EU’s wishes this month; the company is also introducing energy labels for iPhones and iPads sold in the region.
