Apple’s App Store reforms likely to win EU approval, avert daily fines

Apple appears poised to receive the green light from European Union antitrust regulators following a significant revision of its App Store policies. This development could spare the technology giant from imposing hefty daily fines, according to sources familiar with the situation. In a bid to address concerns raised by the European Commission, Apple introduced a new fee structure last month. This change came in response to a prior €500 million fine levied against the company for violating the bloc's Digital Markets Act (DMA). The Commission had accused Apple of restricting developers' ability to inform users about alternative payment options that might be more cost-effective than those available through the App Store. Under the updated framework, developers selling through the App Store will face a 20% processing fee, although small businesses will benefit from a reduced rate of 13%. Additionally, developers who guide users to external payment methods will incur fees ranging between 5% and 15%. Notably, Apple has also lifted previous restrictions, allowing developers to include multiple links to third-party payment platforms. These reforms come after the EU granted Apple a 60-day period to comply with the DMA or risk facing punitive fines. If compliance had not been achieved, the company could have faced daily charges of up to 5% of its global revenue, translating to approximately €50 million daily. While the European Commission has not yet made a final decision, insiders suggest that approval may be forthcoming in the next few weeks. However, the regulator is still scrutinizing Apple's proposed changes, with a spokesperson stating, "All options remain on the table. We are still assessing Apple’s proposed changes." Apple has asserted that its efforts are directed at complying with EU law to avoid further penalties, although it has criticized the Commission for attempting to dictate the management of its digital marketplace.