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Yes—Apple was fined €500 million by the European Commission on April 23, 2025. The penalty concerned Apple’s App Store “anti-steering” rules under Article 5(4) of the Digital Markets Act (DMA). Those rules limited developers’ ability to tell customers about cheaper or alternative offers outside the App Store, direct users to them, and facilitate purchases through external payment systems.
The decision did not declare Apple’s entire App Store model illegal, and it was not primarily a ruling requiring third-party app stores. Apple later announced revised EU terms, but the Commission’s assessment of those terms remained an important part of the dispute.
What Apple was fined for
The European Commission found that Apple breached the DMA’s anti-steering obligation. In practical terms, the Commission objected to restrictions that prevented developers from freely communicating with customers about offers outside Apple’s in-app payment system.
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For example, a music, video, dating, gaming, news or subscription app might sell access for less on its own website than inside the App Store. Under the rules challenged by the Commission, the developer’s ability to tell an iPhone user about that price, provide a link, or complete the purchase outside Apple’s billing system was restricted.
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The DMA requires a gatekeeper to let developers communicate and steer users to alternative offers without conditions that undermine that right. The Commission’s April 23, 2025 announcement and the final decision summary identify the legal issue as Article 5(4) anti-steering compliance.
The penalty was against Apple, not individual developers or consumers. Apple was one of two companies fined that day; Meta received a separate €200 million penalty. Apple’s fine was €500 million—not €700 million.
What the EU ordered Apple to change
The Commission ordered Apple to stop the non-compliant conduct and remove the technical and commercial restrictions identified in the decision. Apple was also required not to replace those restrictions with measures having an equivalent purpose or effect.
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The decision gave Apple 60 days from notification to comply. The Commission could impose further periodic penalty payments if Apple failed to meet its obligations. The full EUR-Lex decision sets out the enforcement order.
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This does not mean that every developer must offer a lower price outside the App Store, or that every external purchase must be free of Apple charges. The legal change concerns the developer’s ability to communicate and direct users to alternatives. Developers still decide their prices, payment arrangements and business terms.
What Apple changed in the EU
On June 26, 2025, Apple announced revised EU App Store terms. Under the announcement, developers could communicate and promote offers for digital goods and services through destinations of their choice, including:
- a developer’s website;
- an alternative app marketplace;
- another app;
- an external destination outside the app; and
- in certain circumstances, a web view or native experience inside the app.
Apple’s developer announcement described the changes as a response to the DMA. However, the revised terms also included fees. The Commission said it would assess whether Apple’s new arrangements complied with the decision. The available materials do not establish that the Commission formally vacated the fine or issued a definitive declaration that every revised term was compliant.
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Why the new system is still financially complicated
The post-DMA model cannot be accurately summarized as either “Apple takes 30%” or “developers can now avoid Apple’s fees.” Apple’s EU DMA documentation describes several possible charges, depending on the developer’s terms, distribution method, transaction type and date.
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Possible components include:
- a reduced App Store commission under alternative EU terms;
- an initial acquisition fee;
- a store-services fee; and
- a Core Technology Commission (CTC) for qualifying activity.
Apple’s documentation stated that a 5% CTC could apply from June 26, 2025 to certain digital goods and services promoted in an app and usable in an App Store app. It also described a planned transition toward a single EU business model from January 1, 2026. The applicable amount depends on the contract and circumstances; there is no single fee that applies to every EU app or external transaction.
Apple also documents exemptions and thresholds. Certain free apps, nonprofits, educational institutions, governments and apps below the applicable installation threshold may not pay the Core Technology Fee or related charges. A free app is therefore not automatically outside the rules, particularly if it promotes paid digital goods or services.
Steering is not the same as sideloading
Several distinct issues are often incorrectly grouped together.
| Issue | What it concerns | Status |
|---|---|---|
| Anti-steering | Whether an App Store app can communicate external offers and direct users to them | Subject of the final €500 million decision |
| Alternative payments | Processing transactions outside Apple’s billing system | Related to the App Store terms and DMA obligations |
| Alternative marketplaces | Third-party app stores | Separate distribution obligations and proceedings |
| Web distribution | Installing apps directly from developer websites | Separate distribution framework |
On April 23, 2025, the Commission separately issued preliminary findings concerning Apple’s contractual conditions for alternative app distribution. Those findings were not the same as the final anti-steering decision. The distinction is explained in the Commission’s separate announcement and its developer portal.
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What the fine means for EU consumers
The DMA changes create the possibility of more visible external purchasing options, such as a link to a developer’s website. That may help consumers compare prices and payment options, but it does not guarantee savings. Developers may keep the same price, and the final cost can reflect VAT, currency conversion, payment-processing costs, promotions and different subscription terms.
External payment also changes who handles the transaction. Before paying, consumers should check:
- which company is charging the card or payment account;
- where the receipt will come from;
- how cancellation works;
- which company handles refunds and disputes; and
- whether purchases restore normally across devices.
An external purchase may not receive the same Apple billing support, App Store refund process, parental-control coverage or fraud protections. An external link from an App Store app also does not necessarily mean the app itself came from an alternative marketplace.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchApple argues that alternative payments and distribution can weaken the integrated security, privacy and support experience of the App Store. Those are Apple’s policy and risk claims, not the Commission’s finding that every alternative transaction is unsafe. Apple’s position is summarized in its DMA impact statement.
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What the fine means for developers
Developers gain more freedom to communicate prices, maintain direct customer relationships and use external payment or distribution options. For a subscription business with an established website and payment infrastructure, those options may be commercially attractive.
But avoiding or reducing an App Store commission is not the same as eliminating distribution costs. A developer considering Apple’s alternative terms should model:
- all applicable Apple fees, including acquisition, store-services and CTC charges;
- payment-processing costs;
- tax and VAT administration;
- fraud prevention and chargebacks;
- refunds and customer support;
- engineering and compliance work; and
- the possible effect on conversion, churn and App Store discovery.
Remaining on Apple’s existing terms may still be rational for an app that values App Store billing, support and discovery, does not need external distribution, has relatively low revenue, or lacks the staff to operate an independent payment system. Apple says developers can remain on existing business terms, and some developers pay no commission under the standard App Store model.
These DMA-related changes apply to apps distributed to users in the 27 EU member states. They should not automatically be extended to the United Kingdom, the United States or all of Europe.
Timeline of the dispute
- September 5, 2023: The Commission designated Apple a DMA gatekeeper for iOS, the App Store and Safari.
- March 7, 2024: The DMA’s principal gatekeeper obligations became applicable.
- March 25, 2024: The Commission opened proceedings concerning Apple’s steering rules and other DMA matters.
- April 23, 2025: The Commission found Apple in breach of Article 5(4) and imposed the €500 million fine.
- April 23, 2025: The Commission separately issued preliminary findings concerning alternative app distribution.
- June 16, 2025: The final decision summary was published in the Official Journal.
- June 26, 2025: Apple announced updated EU terms allowing broader communication and promotion of external offers.
- January 1, 2026: Apple’s documentation described a planned transition toward a single EU business model.
What remains unresolved
The fine and compliance order remain distinct from Apple’s later terms. As of August 18, 2026, the available materials confirm the Commission’s penalty, the order to change the steering rules and Apple’s revised terms, but do not confirm that the Commission formally vacated the fine or publicly declared every revised term fully compliant.
The continuing questions are whether the Commission will require further changes or penalties, how any judicial challenge is resolved, and whether developers adopt external payments and distribution at meaningful scale. The practical result for consumers will depend less on the existence of a legal right to steer than on whether developers use it—and whether the resulting fees and administrative costs make the alternatives worthwhile.
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