Apple’s App Store fees are under simultaneous pressure in U.S. court and EU DMA probes

Apple’s latest App Store fee model is being tested on two fronts that now move in parallel. A federal judge in California found Apple out of compliance with an existing injunction on anti-steering, while the European Commission issued preliminary findings that its new terms breach the Digital Markets Act.

The filings cut past marketing language and focus on how much control Apple can still exert over transactions it does not process. Developers and competitors say the outcome will shape whether alternative distribution and billing are a real option.

What the filings say

In May 2024, Judge Yvonne Gonzalez Rogers ruled that Apple’s implementation of the Epic injunction continued to restrict developers from informing users about better prices outside the app and from using functional out-links on equal footing. The order directed Apple to revise its external link program and remove policies that deterred or penalized steering to off-app payment options. Case: Epic Games, Inc. v. Apple Inc., No. 4:20-cv-05640, N.D. Cal., Order re Remedies Compliance, May 2024.

The European Commission opened DMA proceedings against Apple on March 25, 2024, then issued preliminary findings on June 24, 2024 that Apple’s steering rules did not comply with Article 5. The Commission also signaled concerns with Apple’s new Core Technology Fee and conditions on alternative app distribution in the EU. Documents: European Commission, Case on Apple’s compliance with the DMA, proceedings opened March 25, 2024, preliminary findings published June 24, 2024.

Apple has told investors that regulatory changes to app distribution and billing could be material. In its Form 10‑Q for the quarter ended March 30, 2024, Apple disclosed that implementation of the DMA and related enforcement actions may adversely affect the company’s business, results of operations, and financial condition.

The structural issue

At stake is whether Apple can shift away from percentage commissions toward a web of new charges and terms that recapture similar economics. In the United States, Apple introduced an external link entitlement with conditions and a fee on subsequent purchases made after users click out. In the EU, Apple proposed a per install Core Technology Fee for developers that choose new distribution options.

Regulators are testing if those constructs amount to a new form of gatekeeping around off platform commerce. Developers argue that link fees, reporting requirements, and user interface restrictions chill steering even when nominally permitted.

Who is affected

The immediate impact falls on subscription and content apps that rely on recurring payments. Streaming, news, education, and productivity services face shifting unit economics depending on whether link outs or alternative stores become workable at scale.

Consumers may see more offers to pay outside the app and potentially lower prices if frictions lift. Competing app stores and browser based distribution stand to gain if legal orders force Apple to neutralize design and policy barriers.

What happens next

In the Epic case, Apple faces ongoing judicial supervision of its compliance plan, with potential further orders if the court finds continued violations. Any appeal of the compliance order would run through the Ninth Circuit on a separate track from the original merits appeal.

In Brussels, the Commission can adopt a final decision under the DMA and impose fines up to 10 percent of worldwide turnover for noncompliance, as well as periodic penalty payments. Apple’s responses to the preliminary findings and any proposed commitments will set the timeline for a decision, which industry counsel expect later this year.