EU likely to approve Apple’s new App Store changes, avoiding fines

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Apple may have avoided major daily fines from the European Union thanks to some recent changes it made to the App Store. 

A new report suggests that the EU is likely to approve Apple’s updated policies, meaning the company won’t face the daily penalties, up to $58 million per day, it was previously threatened with.

This situation all started because of the EU’s Digital Markets Act, a law designed to keep big tech companies from abusing their power. 

Apple was already fined $570 million earlier this year for allegedly favoring its own Apple Music service over competitors like Spotify. 

Apple claimed that the EU told it to wait before making certain changes, and if it hadn’t waited, it could’ve avoided the fine altogether.

Despite pushing back against the DMA, Apple has been working to make changes to its App Store. 

According to Reuters, the EU is likely to accept these latest changes, which means no immediate fines. 

However, nothing is final yet. The EU says it’s still reviewing Apple’s proposal and could change course.

At the last minute, right before a 60-day deadline expired on June 26, Apple announced a new set of fees and policy updates for developers. 

Previously, Apple charged a 27% Core Technology Fee (CTE) to cover the costs of hosting and distributing apps. Now, the CTE is being replaced with three new fees:

• Acquisition Fee – 2% on digital sales for the first six months after a user downloads the app.
  
• Store Services Fee – Between 5% and 13%, depending on the type of app and the size of the developer.
  
• Core Technology Fee or Commission – Developers can choose between a per-transaction fee (€0.50) or a 5% revenue share.

These changes are meant to align Apple with the EU’s rules while still allowing it to earn revenue from the App Store. 

Although the EU hasn’t officially approved the changes yet, it hasn’t issued fines either. Some believe trade negotiations between the EU and the US may be influencing the delay.

Do you think Apple’s App Store changes go far enough to comply with EU competition rules? Or should the EU push for even more significant reforms to break up Apple’s control over its ecosystem? Tell us below in the comments, or reach us via our Twitter or Facebook.