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Apple breached the EU’s Digital Markets Act over App Store steering—what changes for users and developers

The European Commission’s €500 million Apple fine was for App Store anti-steering, not a final ruling that every App Store or Core Technology Fee is unlawful. Here is what EU users and developers can actually do.
From TheFinanceBase Team6 min to read
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Yes—but only in a specific, final decision. On April 23, 2025, the European Commission found that Apple breached Article 5(4) of the EU Digital Markets Act (DMA), fined it €500 million and ordered it to remove restrictions that stopped App Store developers from steering users to cheaper or alternative offers outside Apple’s billing system. The Commission’s concerns about alternative app distribution and Apple’s Core Technology Fee were separate preliminary findings, not part of that final fine.

What Apple was found to have breached

Article 5(4) is the DMA’s anti-steering rule. For apps distributed through the App Store, developers must be able to communicate with users, explain offers available elsewhere, direct users to those offers and let transactions occur outside Apple’s in-app-purchase system. The Commission said Apple’s technical and commercial rules made those rights ineffective in practice.

The legal issue was therefore not a blanket finding that the App Store is unlawful or that Apple may charge nothing. It was whether Apple’s restrictions, fees and implementation prevented meaningful steering. The Commission’s explanation is in its decision summary and decision PDF.

What the final decision required

The Commission found that none of Apple’s business terms available in the EU complied with Article 5(4) as applied to the App Store. Apple was ordered to stop the non-compliant conduct, remove the relevant technical and commercial restrictions and avoid replacing them with measures that have an equivalent effect. The penalty was €500 million—one of the DMA’s first fines. The Commission’s announcement records the Apple decision; the EU’s 2025 report records Apple’s €500 million penalty alongside Meta’s separate €200 million penalty (general report).

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This was an enforcement penalty for non-compliance, not a damages award calculated from consumers’ lost savings. Nor did it abolish Apple’s commissions or require every developer to pass avoided fees to customers.

The separate dispute over alternative app distribution

The DMA also requires Apple to enable effective alternatives to App Store distribution, including authorized third-party marketplaces and, subject to conditions, direct web distribution. On April 23, 2025, the Commission issued preliminary findings that Apple’s contractual conditions could discourage those channels, particularly through the Core Technology Fee. Those findings were not the final anti-steering decision or a final ruling that the fee is illegal. The Commission’s separate announcement explains the distinction.

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That distinction still matters. As of the Commission’s May 21, 2026 report, Apple and other gatekeepers were changing app-store terms and the Commission was assessing whether the changes were sufficient for effective Article 5(4) compliance (2026 report). A current article should therefore identify the specific obligation and the regulator’s latest assessment rather than saying generally that “Apple’s entire App Store is still in breach.”

What EU users can actually do

Apple’s EU developer materials describe alternative marketplaces, authorized direct web distribution, alternative payment processors, external-offer links, browser and default-app choices, expanded analytics, data portability and interoperability-request procedures (Apple’s EU DMA support page). These arrangements apply in the EU’s 27 member states, not automatically in the United Kingdom, Switzerland, the United States or elsewhere.

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Alternative installation is controlled, not unrestricted sideloading

  • Apple says iOS 17.4 and later and iPadOS 18 and later support the EU alternative-installation experience; the installation flow was updated from iOS 18.6 and iPadOS 18.6.
  • Marketplace apps are installed from the marketplace operator’s website. Users must approve the marketplace or developer in Settings.
  • Developers and marketplace operators must satisfy Apple authorization, notarization and integrity conditions.
  • Deleting a marketplace can stop updates for apps installed through it and may affect their operation.

Apple warns that distribution outside the App Store can increase exposure to malware, scams, fraud, piracy, harmful content and privacy risks. That is Apple’s stated risk assessment, not proof that every alternative store is unsafe. Apple also says iOS or iPadOS can block an app from launching and revoke new installations if it later identifies known malware. Those measures reduce risk but do not recreate the App Store’s full review, payment and support model (Apple’s user statement).

Apple’s EU fee choices for developers

Apple’s alternative EU business terms separate several charges. The applicable agreement and transaction type control the result.

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Model Distribution Payment Main fee issues
Existing Apple terms App Store Apple In-App Purchase Existing Apple commission structure and Apple-managed billing.
Alternative EU terms App Store and/or authorized alternative distribution Apple or an external processor Generally 10% or 17% commission on digital goods and services, plus an optional 3% Apple payment-processing fee when Apple processes payment; a possible €0.50 Core Technology Fee applies to each qualifying first annual install above one million per year.
External offer promoted in an app App distributed through Apple or another authorized channel External website or processor Developer-operated billing and support; Apple’s materials describe a 5% Core Technology Commission for certain externally promoted digital goods or services from June 26, 2025, with a planned transition from the Core Technology Fee toward that commission from January 1, 2026.

Apple says developers can use an external payment-service provider in the app or link users to a website without an additional Apple payment-processing fee. That does not mean the broader commission or technology charges disappear. Apple also says the alternative terms are optional, but adopting them is required to use alternative distribution or alternative payment capabilities.

Apple claims fewer than 1% of developers would pay the Core Technology Fee and that 88% of EU App Store developers pay no commission under its definition. These are Apple’s estimates, not independent Commission findings. Developers should model payment fees, taxes, currency conversion, fraud, refunds, customer service and subscription operations—not just compare 15% or 30% headline rates.

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Consumer trade-offs

Potential benefits

  • Developers can advertise web or other external offers more openly.
  • Some apps can offer alternative checkout and subscription arrangements.
  • Users have additional distribution channels for eligible apps.

Costs and loss of uniformity

  • Refunds, chargebacks, subscription cancellation and support may move from Apple to the developer or payment provider.
  • External checkout can add steps and may not support every Apple billing feature.
  • Alternative channels may have different moderation, privacy and security practices.
  • A developer is allowed to steer users but is not required to pass every avoided Apple fee to them.

How developers should choose

A small subscription app, a major game publisher, a free app, a music service and a marketplace operator face different economics. Before accepting alternative terms, a developer should check:

  • Whether expected external sales outweigh payment, tax, fraud, refund and support costs.
  • How subscriptions, receipts, chargebacks and customer identities will be managed across systems.
  • Whether install volume creates exposure to the Core Technology Fee or whether the Core Technology Commission applies.
  • How much discovery and conversion depends on the App Store.
  • An alternative marketplace’s authorization, approval process, content policies, fees, update reliability and legal protections.
  • Whether the applicable addenda allow a practical return to existing terms.

Apple specifically advises developers to assess an alternative marketplace’s financial obligations, approval process, policies and legal protections before enrolling (developer guidance).

Key dates and what happens next

Date Event
September 5, 2023 Apple was designated a DMA gatekeeper for iOS, the App Store and Safari.
March 25, 2024 The Commission opened formal proceedings on Apple’s App Store rules.
April 29, 2024 iPadOS was added to Apple’s designated core platform services.
June 24, 2024 The Commission sent preliminary anti-steering findings.
April 23, 2025 Final €500 million anti-steering decision; separate preliminary findings on alternative distribution.
June 16, 2025 The Apple decision summary was published in the Official Journal.
June 26, 2025 Apple’s stated 5% Core Technology Commission began for specified externally promoted digital goods.
January 1, 2026 Apple’s materials described a planned transition toward the Core Technology Commission.
May 21, 2026 The Commission said revised app-store terms were still being assessed for effective compliance.

The durable conclusion is narrow but significant: Apple has a final EU anti-steering infringement and a €500 million fine. The broader question—whether Apple’s evolving alternative-distribution terms fully satisfy the DMA—remains a matter for the Commission’s continuing assessment, not something the 2025 fine settled by itself.

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