Apple has made significant changes to its App Store policies in the EU in a last-minute effort to avoid hefty fines from Brussels. The tech giant, valued at $3 trillion, has agreed to allow developers in the European bloc to distribute iOS apps through channels other than Apple’s App Store, following a €500 million fine for violating the EU’s Digital Markets Act. Apple has been engaged in negotiations with the European Commission for the past two months, with accusations of shifting requirements to comply with the EU’s digital regulations.
The announcement of these policy changes by Apple comes on the heels of a deadline set by the EU to adhere to the bloc’s regulations or face escalating penalties. These fines could potentially reach up to 5% of Apple’s daily global revenue. Despite the company’s willingness to make adjustments, an Apple spokesperson expressed disagreement with the Commission’s demands and plans to appeal the decision.
In response to Apple’s actions, a spokesperson for the European Commission stated that they would assess the new terms to ensure compliance with the Digital Markets Act. Market operators and other stakeholders will be consulted before further steps are taken.
The timing of these developments coincides with ongoing trade negotiations between Brussels and Washington, as both parties work towards reaching a trade agreement by July 9. The regulatory stance on Big Tech companies has been a contentious issue in the EU-US relations, but the Commission remains steadfast in upholding its digital regulations independent of any trade deals.
