EU likely to approve Apple's App Store reforms, averting daily fines
The move could help the tech giant dodge potentially massive daily fines, bringing it into compliance with the EU's stringent Digital Markets Act (DMA).
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Apple is likely to receive the go-ahead from European Union antitrust regulators for its recently proposed changes to the App Store, sources with direct knowledge of the matter said, as per a Reuters report.
The move could help the tech giant dodge potentially massive daily fines, bringing it into compliance with the EU's stringent Digital Markets Act (DMA).
Last month, Apple introduced a revised fee structure, stating that developers would now pay a 20% commission for purchases made through the App Store. Smaller developers enrolled in Apple's small-business program would see their fees drop as low as 13%.
Crucially, Apple also announced that developers directing their users outside the App Store for purchases would be charged between 5% and 15%, and they would now be permitted to include multiple external links to third-party payment options, the report added.
These changes came after the European Commission fined Apple 500 million euros (approximately $586.7 million) in April. Regulators accused the company of using restrictive practices that blocked app developers from guiding consumers to more affordable options outside the App Store - a violation of the DMA. Apple was given 60 days to eliminate those restrictions or face daily penalties, said the report.
Although the European Commission has yet to formally approve Apple's updated policies, sources in the report said the green light is expected within weeks.
Apple has not publicly commented on the latest regulatory developments. However, the company previously stated that it implemented the adjustments in order to comply with the law and avoid daily fines, while also criticizing the Commission’s stance on how the App Store should be managed.
Had Apple failed to act, it faced potential daily fines of up to 5% of its average global daily revenue - a penalty that could have reached approximately 50 million euros per day.
