Europe Forces Apple to Fully Open iPhone App Store: Here’s What Will Change

Europe has issued a stern warning to Apple’s CEO, presenting a tight deadline of just a few weeks to make its iPhone App Store more competitive in the single market. Even though Apple agreed to adapt to the legal framework of the 27 EU countries, including introducing alternative stores, developers still find that Apple is discouraging them from using external payment systems.

The European Commission is still addressing issues with Apple and its App Store. The recent compliance efforts by Apple, as mandated by European authorities, didn’t fully align with the intended spirit of the regulations. Initially, the Commission demanded that Apple modify its App Store to comply with the Digital Market Act.

This legislation identifies that beyond a certain limit, a massive platform operated by a single entity becomes a kind of walled garden. In this controlled space, the operator can freely exploit its dominant position. Until recently, Apple could block the installation of competing stores, or arbitrarily remove apps from its App Store.

Apple Has Made Strides in Opening Its Ecosystem

Previously, Apple also restricted the installation of apps not found on its pre-installed App Store and enforced its own payment rules, preventing developers from promoting alternative systems. However, changes have been made in Europe thanks to the Digital Market Act and the actions of European Commissioners.

The updated rules still require a commission to be paid for apps on the App Store—17%, reduced to 10% for small businesses. An additional 3% fee is charged if Apple’s payment system is used.

Developers who distribute their apps through alternative stores can avoid these charges if they bypass conventional solutions. However, they must still pay Apple 50 cents for each installation of their app once it surpasses one million downloads.

The Company Continues to Pressure Developers

Upon investigation, the European Commission has found that Apple is still not fully compliant with the regulations. Developers are still unable to clearly promote alternative payment systems within their apps. Additionally, a 27% commission is imposed for purchases made on third-party sites through an app.

In response to the Commission, Apple claimed that the ambiguity of the DMA requires it to “allow” the promotion of other payment systems, but not necessarily to “facilitate” them. The Commission has rejected this argument and now mandates Apple to fully comply with all its obligations by June 22, 2025.

Apple must also pay a fine of 500 million euros by June 23, after which the amount will increase if not paid. Should Apple fail to meet this deadline, the Commissioners have warned of “periodic financial sanctions.” The amount of these penalties will vary depending on the severity of the violations.

Users are expected to directly benefit from this compliance, especially when subscribing to services directly through the App Store. These services often incorporate the additional costs imposed by the company into their pricing on the platform…