Apple revamps App Store rules to dodge EU fines

Apple has made several updates to the fees and rules for its App Store to avoid large daily fines that the EU antitrust regulators would have possibly put in place. People familiar with the situation anticipate that the odds of the regulators approving these updates are high.

Following Apple’s updates on fees for its App Store, developers will now be required to pay a 20% service fee, a reduction from the initial 30% it had set earlier. Moreover, the fee will be reduced to at least 13% for its small business initiative.

The tech company announced a reduced fee range of 5% to 15% for developers, directing its clients to deliver payments away from the App Store. Additionally, they could access links they need to help users find other suitable ways to make their payments.

Apple updates its App Store fees and rules to avoid large daily fines

In April, the EU antitrust regulators took legal measures against Apple for violating the Digital Markets Act (DMA). They alleged that the iPhone maker had set limitations for developers who were helping users find cheaper payment alternatives apart from the App Store. Apple was subjected to a 500 million euro fine worth $586.7 million.

After receiving the fine, the tech giant had 60 days to change its restrictions to abide by the DMA’s regulations. Notably, the DMA is a European Union regulation designed for Big Tech companies to ensure fairness and competition in the market.

According to the individuals who know the situation, the EU Commission will approve the changes in the next few weeks. However, this timing could change due to unavoidable circumstances.

The EU watchdog stated that all options are still available. This came after they mentioned that they are still evaluating Apple’s proposed changes.

As the iPhone maker made the changes to avoid large daily fines, it expressed disapproval of the EU regulators’ action of interfering with its App Store operations.

Concerning the daily fine, it could have been subjected to a 5% fine on its average daily revenue in its global operations. This is about 50 million euros in a day.

Apple disproves the EU Commission’s action against it 

On July 7, Apple took an initiative to go to Europe’s second-highest court after being fined, challenging the EU watchdog. The giant tech company vowed to pursue legal action against the regulators as it did not agree with the action they took against it.

In a statement, the iPhone maker stated that they had submitted their appeal, arguing that the decision the EU Commission arrived at and the fine they had set against it were more than what is stated in the law.

According to Apple, they made the changes only to prevent daily fines, and they will present the facts to the court. 

Otherwise, the regulator’s action pushes business rules that cause confusion among developers and greatly affect its clients, the company said. 

It further pointed out that their appeal demonstrated the regulator’s act of controlling its business operations.

While the situation becomes uncertain as days pass, people await the regulator’s decision to approve or request more adjustments.

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