Apple Will Let EU Users Download From Developers' Sites To Avoid App Store Commission Fees

By
Naomi Buchanan
Naomi Buchanan
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Naomi Buchanan is a reporter at Investopedia breaking down news stories that impact investors.
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Published March 12, 2024
04:15 PM EDT
The Apple logo on display in Italy.

 Emanuele Cremaschi / Getty Images

Key Takeaways

  • Apple said Tuesday it will allow users in the European Union (EU) to directly download apps onto iOS products from developers' websites.
  • By making purchases directly through developers' sites rather than through the App Store, developers will avoid paying Apple a commission.
  • Apple has recently made changes to its systems, including the App Store and Apple Pay, to comply with the EU's Digital Markets Act (DMA).
  • The EU recently fined Apple around $2 billion (1.8 billion euros) for "abusive App store rules."

Apple (AAPL) will allow users in the European Union (EU) to download iOS apps directly from developers' websites, bypassing the App Store and its associated fees, the iPhone maker announced on Tuesday.

"Web Distribution, available in a software update later this spring, will let authorized developers distribute their iOS apps to EU users directly from a website the developer owns and operates," Apple said.

The company said that developers will have to meet "Notarization requirements to protect platform integrity" so that apps can "only be installed from a website domain that the developer has registered in App Store Connect."

Apple has recently introduced changes to the App Store and Apple Pay, among other systems, to comply with the Digital Markets Act (DMA). Apple and other gatekeepers were required to make changes set by the European Commission by March 7.

Before the DMA deadline, the EU fined Apple around $2 billion (1.8 billion euros) for "abusive App store rules for music streaming providers" earlier in the month. Apple said it intends to appeal the EU's decision, which it said would bolster the already dominant position of Spotify (SPOT).

In its response to the fine, Apple said that "despite that success, and the App Store’s role in making it possible, Spotify pays Apple nothing" as the music streaming platform sells subscriptions on its website rather than on its iOS app, so that "Apple doesn’t collect a commission on those purchases."

The Web Distribution update could make it easier for other developers to encourage users to make purchases directly through their sites and avoid Apple taking a commission.

Apple shares gained 0.3% to close at $173.23 on Tuesday.

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Article Sources
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  1. Apple Developer. "Getting ready for Web Distribution in the EU."

  2. Apple. "The App Store, Spotify, and Europe’s thriving digital music market."

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