Apple revamps EU App Store rules to dodge €50M/day fines
What's the story
Apple's recent changes to its App Store rules and fees are likely to get the nod from European Union (EU) antitrust regulators, as per Reuters. These revisions could save the tech giant from facing hefty daily fines of up to 5% of daily global revenue—around €50 million per day. Last month, Apple announced that developers would pay a 20% processing fee for purchases made through the App Store. However, this fee could go as low as 13% under Apple's small-business program.
Fee adjustments
Changes in fee structure for developers
Apple has also introduced a new fee structure for developers who redirect customers to external payment methods. These developers will now pay a fee ranging from 5% to 15%. They can also use unlimited links directing users to alternative payment methods. The changes were made after the EU antitrust regulator slapped Apple with a €500 million fine in April and gave it 60 days to comply with the Digital Markets Act.
Regulatory response
Timeline for approval uncertain
The European Commission is likely to approve Apple's changes in the coming weeks. However, an official timeline remains uncertain. The EU watchdog said, "All options remain on the table. We are still assessing Apple's proposed changes." Apple has already implemented these changes to avoid punitive daily fines and criticized the Commission for dictating how it operates its store.