Apple finds itself in intense, final-stage discussions with European Union regulators concerning changes to its App Store policies. The high-stakes negotiations are unfolding just three days before a crucial June 26 compliance deadline, which, if missed, could trigger significant financial penalties for the technology behemoth.
The core of these ongoing discussions revolves around Apple's "anti-steering" rules. These provisions currently restrict the ability of app developers to inform users about, or direct them towards, alternative payment options outside of Apple's App Store. Sources close to the negotiations anticipate that Apple will offer concessions on these restrictive terms. Furthermore, the controversial Core Technology Fee, which has drawn considerable scrutiny from regulators and developers alike, is also reportedly a subject of these talks.
Apple is under immense pressure, having already faced a €500 million fine in April for its failure to comply with the EU's Digital Markets Act (DMA) by blocking developers from "steering" customers to cheaper alternatives. The European Commission has affirmed its engagement with Apple "to discuss effective compliance," while simultaneously issuing a stern warning about its "ample regulatory powers" should violations persist.
While the Commission indicated last week that it might not immediately impose additional fines after the deadline, signaling the continuation of dialogues, failure to reach a satisfactory agreement could still lead to periodic penalty payments until Apple fully complies.
The initial €500 million fine specifically targeted Apple's restrictions that prevented developers from communicating with users about external offers or payment methods. Under Apple's current EU App Store guidelines, developers are allowed to include only one external link to their website, but Apple levies a substantial 27% commission on purchases made via such links. European regulators have explicitly stated that Apple's business terms do not allow developers to "freely steer their customers," citing limitations on providing pricing information within apps or promoting offers available through alternative distribution channels.
Although the precise details of Apple's proposed concessions remain confidential, reports suggest that discussions have encompassed the Core Technology Fee. This fee mandates that EU developers pay €0.50 per annual install after their apps reach one million downloads. Apple has previously defended this fee, asserting that it made adjustments based on feedback and that its revised terms would result in consistent or reduced fees for over 99% of developers. The company has also voiced frustration, perceiving the regulatory expectations as constantly "moving the goalposts."
The European Publishers Council has commended the Commission's enforcement actions, with Executive Director Angela Mills Wade stating that "Apple has long frustrated greater competition in app distribution and in payment solutions via a combination of friction and excessive fees." The European Commission will meticulously review any changes Apple announces to ascertain whether they adequately meet the DMA's requirements before making a final decision on imposing any further penalties beyond the upcoming Thursday deadline.
