Apple in talks to avoid further EU fines with new App Store changes: Report

Indian Express

5 days ago

Apple is currently in last-minute negotiations with Brussels regulators in order to avoid further penalties under the European Union's Digital Markets Act (DMA).
Initially, the tech company was fined 500 million euros (approx. ₹4900 cr) for violations of the DMA. It was subsequently given a 60-day deadline to comply with the legislation. This deadline expires on Thursday, 26 June, but no changes have been announced to Apple's App Store guidelines yet.
The initial 500 million-euro fine was based on App Store's anti-steering policies that prohibit developers from communicating with users about payment options outside of the App Store. While developers are permitted to show users a single link to their website, Apple reportedly takes a 27 per cent commission on any payments made through the provided link.
The European Commission has suggested that Apple might not face any additional penalties, as the two sides have been in discussions about rectifying the situation. These discussions also involved the Core Technology Fee (CTF) put in place by Apple, where app developers pay €0.50 for each first annual install after one million downloads, according to FT.
However, it is expected that Apple will announce minor concessions to secure more time and subsequently gauge potential changes before announcing a final decision. The European Commission would then likely review the changes and determine whether they comply with the Digital Market Act before penalising Apple.
It is unclear what changes Apple is expected to roll out. A potential change could be the permitting external payment links on the App Store without commission or altering the CTF regulations currently in place.
The iPhone-maker has also been charged with breaching DMA rules on the grounds it hindered users from sideloading, a practice that involves downloading alternative app stores and apps from the web.
The EU fines could also stoke tensions with US President Donald Trump who has threatened to levy tariffs against countries that penalise companies based in the country. The Trump administration has called these fines a 'novel form of economic extortion' that the US will not tolerate.
'We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values,' EU antitrust chief Teresa Ribera has previously been quoted as saying by Reuters.
Apple has avoided a fine in a separate investigation into its browser options on iPhones after making changes that allow users to switch to a rival browser or search engine more easily. Regulators said these comply with the DMA and closed the investigation in April this year.