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Short answer: the European Commission did not reject Apple’s App Store changes by imposing a fine on March 25, 2024. It opened a formal Digital Markets Act (DMA) investigation because it suspected Apple’s rules did not let developers steer customers to cheaper or different purchasing options effectively. A confirmed infringement could lead to a fine of up to 10% of Apple’s worldwide annual turnover, rising to 20% for a repeated infringement—but 10% was a legal maximum, not an automatic or already-issued penalty.
The latest official status covered by the available evidence is mixed: the Commission closed its investigation into Apple’s browser choice and default-setting obligations on April 23, 2025, but issued preliminary findings against Apple’s alternative-app-distribution terms. Preliminary findings are not the same as a final infringement decision or a fine.
What Apple changed in the EU
Apple announced its initial DMA response on January 25, 2024, ahead of the March 7 compliance deadline. The changes applied to the European Union’s 27 member states—not automatically to iPhones or developers worldwide.
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Apple’s package included:
- Alternative app marketplaces on iPhone;
- web distribution of apps;
- alternative payment processing;
- links and other methods for steering users to offers outside the App Store;
- a Safari browser-choice screen;
- more default-app controls;
- new developer APIs and analytics; and
- notarization and other security measures for apps distributed outside the App Store.
Apple said alternative distribution would create additional privacy, fraud, malware and security risks. Its announcement is available in Apple’s EU changes overview.
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Why the Commission objected
The DMA requires gatekeepers such as Apple to allow developers to tell users about offers outside the App Store, direct users to those offers and let users complete purchases through alternative channels.
The dispute was therefore not simply whether Apple technically permitted an external payment link. The Commission questioned whether Apple’s contractual terms, fees and user experience made that right too expensive, restricted or confusing to use in practice.
On March 25, 2024, the Commission opened a non-compliance investigation into Apple’s steering rules. It also raised concerns about the new fees and conditions attached to alternative app marketplaces and web distribution. The Commission’s announcement described an investigation—not a final finding that Apple had infringed the DMA.
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Under Apple’s initial alternative EU terms, qualifying transactions could involve:
- a 10% commission for the vast majority of developers and for subscriptions after the first year;
- a 17% commission on other qualifying digital-goods and digital-services transactions; and
- an additional 3% payment-processing fee when developers used Apple’s payment processing.
Apple said it would not charge its payment-processing fee when developers used an alternative provider or directed users to an external website, although other commissions could still apply. These figures describe Apple’s published alternative terms and should not be read as an independent Commission calculation.
The Commission’s concern was whether Apple’s rules limited how developers could communicate external offers—for example, by restricting presentation, links or the overall path to purchase. In practical terms, there is a significant difference between permitting an external payment option in principle and allowing developers to promote and steer customers to it freely and effectively.
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On June 24, 2024, the Commission issued preliminary findings that Apple’s steering rules breached the DMA and opened an additional investigation into Apple’s alternative business terms. Apple was given the opportunity to inspect the file and exercise its rights of defense. The Commission’s June 2024 update used the language of preliminary findings, not a final fine decision.
What was the Core Technology Fee?
Under Apple’s original alternative business terms, a qualifying app paid €0.50 for each first annual install above one million in a 12-month period.
Apple defined a first annual install as the first installation by an EU account during that period. Repeated installations by the same account during the same 12 months did not create another charge.
| Example | Illustrative result under the original model |
|---|---|
| 800,000 first annual EU installs | No €0.50 fee under the one-million threshold |
| 1.2 million first annual EU installs | 200,000 installs above the threshold × €0.50 = €100,000 |
The second example is only an illustration of the original terms. It does not establish what a developer would owe in every situation, and it should not be assumed to describe Apple’s current 2026 model.
The original terms also contained important qualifications:
- The fee applied to developers using Apple’s alternative business terms and reaching the relevant scale.
- Apple said fewer than 1% of developers would pay it.
- Small developers that had not previously exceeded one million first annual installs received a three-year free on-ramp.
- Marketplace developers could receive different treatment: Apple stated that the fee applied to each first annual install of the marketplace app, including installs before the one-million threshold.
- Nonprofits, accredited educational institutions, governments and certain free non-commercial apps could qualify for exemptions.
These are Apple’s stated terms and estimates, not findings accepted by the Commission. A free app could still face costs if it was monetized, used alternative terms or reached the relevant scale.
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Why regulators viewed the fee as a possible barrier
The Commission’s theory was that the fee and related requirements might discourage developers from using alternative distribution, even if Apple formally offered that option.
In its April 23, 2025 preliminary findings on alternative app distribution, the Commission identified three concerns:
- The Core Technology Fee could discourage developers from using alternative distribution.
- Apple’s eligibility requirements were too strict.
- The installation process for alternative app distribution was too burdensome and confusing for users.
A lower App Store commission does not automatically mean a lower total cost. Developers also need to consider payment-processing fees, taxes, fraud prevention, customer support, compliance, reporting, security and the operational work of running an external payment or distribution system.
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What happened to browser choice and default apps?
The Commission closed its investigation into Apple’s browser-choice and default-setting obligations on April 23, 2025, after Apple made changes. Those changes covered the browser-choice screen and made controls easier to access for defaults involving calling, messaging, call filtering, keyboards, password managers and translation services.
That was a partial resolution, not clearance of every Apple DMA issue. On the same date, the Commission issued preliminary findings concerning Apple’s contractual terms for alternative app distribution.
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How the possible 10% fine works
The DMA allows the Commission to impose a fine of up to 10% of a company’s total worldwide annual turnover for an infringement. For a repeated infringement, the ceiling can rise to 20%.
“Up to” is crucial. The figure is a statutory ceiling, not a standard tariff. An investigation does not automatically produce a 10% fine, and preliminary findings do not themselves impose a penalty.
The usual sequence is:
- The Commission opens an investigation.
- It may issue preliminary findings explaining its concerns.
- The company can inspect the file and respond as part of its rights of defense.
- The Commission either closes the case or adopts a final non-compliance decision.
- A final decision may include a fine and remedial measures.
- The company may appeal, potentially leading to further litigation.
For systematic non-compliance, the DMA also allows additional remedies. In serious circumstances, these can potentially include structural remedies, such as requiring a gatekeeper to sell a business or part of one. That possibility is distinct from the 10% fine and is not an automatic consequence of the Apple investigation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What developers had to weigh
Remaining on Apple’s existing terms
Staying on Apple’s existing terms meant avoiding the alternative terms and their associated Core Technology Fee under the original model. Developers could continue using the App Store and Apple’s In-App Purchase system.
The trade-off was less access to alternative marketplaces, external payment processing and some forms of external steering.
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Adopting alternative EU terms
Alternative terms could provide access to alternative app marketplaces, alternative payment processors and broader external-purchase capabilities. They could also offer lower headline commission rates in some circumstances.
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The costs included a more complicated fee structure, possible technology-related charges or successor charges, and greater responsibility for payment, tax, fraud, support, security, reporting and compliance operations. Users might also encounter additional friction when installing apps through alternative channels.
The appropriate choice depended on factors such as EU revenue, first annual install volume, subscription economics, the need for external distribution, the developer’s ability to operate payment systems and the risk that Apple’s terms would change.
A developer could use alternative payment processing without distributing through an alternative marketplace. Marketplace operators could face different fee treatment from ordinary app developers. The DMA rights described here were also geographically limited to the EU.
Are Apple’s 2024 terms still current?
Apple’s developer documentation said EU developers could choose between Apple’s existing business terms and alternative EU terms. It also described access to alternative marketplaces and payment processors under the alternative model.
However, the original 2024 fee structure should not be treated as automatically current. Apple’s documentation included a forward-looking plan to move to a single EU business model from January 1, 2026, transitioning from the Core Technology Fee to a Core Technology Commission on digital goods or services. Because that is a volatile, date-sensitive business term, developers should consult Apple’s current EU DMA documentation and the latest Commission case status before making a financial decision.
What the headline gets wrong
- “The EU rejected Apple’s changes” is shorthand. The precise description is that the Commission opened investigations after suspecting Apple’s measures were not fully compliant.
- “Apple could be fined 10%” means a fine of up to 10% was legally available if an infringement were finally established.
- “Apple was fined 10%” is not supported by the evidence covered here.
- “The fee applies to downloads” is incomplete. The original €0.50 charge concerned qualifying first annual installs under Apple’s alternative terms, with thresholds and exceptions.
- “Apple solved the problem” is incomplete. The browser/default-choice investigation was closed, while alternative-distribution concerns remained at the preliminary-findings stage in the latest official update covered here.
Bottom line
Apple faced a serious EU DMA compliance dispute over steering, alternative payments, alternative app distribution and related fees. The March 25, 2024 announcement created the possibility of a penalty of up to 10% of worldwide annual turnover, or 20% for repeated infringement. It did not impose that penalty.
The legally important distinction is between an investigation, preliminary findings, a final infringement decision and an actual fine. Readers and developers should also avoid treating Apple’s original 2024 fee model as current without checking the latest terms.
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