Apple is currently engaged in last-minute discussions with Brussels regulators in an effort to modify its App Store policies and avoid facing a series of escalating fines imposed by the EU. The tech giant, valued at $3 trillion, is negotiating with the European Commission after being fined €500 million for violating the Digital Markets Act, which aims to limit the dominance of major tech companies.
Individuals familiar with the negotiations anticipate that Apple will make concessions regarding its “steering” regulations that restrict users from accessing offers outside of the App Store. Following the initial fine, regulators instructed Apple to amend its rules within a two-month timeframe to comply with EU regulations and prevent additional penalties. Failure to meet these requirements could result in fines amounting to up to 5% of the company’s daily global revenue.
Sources reveal that Apple is likely to propose adjustments that grant the company more time, as the European Commission will evaluate these changes before reaching a final decision. The discussions have also touched upon Apple’s “Core Technology Fee,” which mandates developers to pay for each annual install exceeding 1 million downloads. The EU has been scrutinizing these business terms since June of the previous year and may opt to pursue further action or close the investigation.
The impending verdict coincides with US President Donald Trump’s visit to Europe for a Nato summit and the approaching deadline for a trade agreement between Brussels and Washington on July 9. The EU’s regulations concerning Big Tech have been a contentious issue between Brussels and Trump, who has criticized the fines as “overseas extortion” and likened them to a form of taxation.
Furthermore, Brussels is set to determine whether Meta’s alterations to its free personalized ads model, announced in November 2024, are sufficient to avoid additional fines under the DMA. The European Commission has confirmed its ongoing discussions with Apple to ensure compliance but refrained from speculating on the potential outcome before the June 26 deadline. It emphasized that regulatory measures could be enforced if Apple fails to adhere to its obligations under the DMA.
Apple has chosen not to provide a comment on the matter.