According to financial news, on the 26th local time, Apple Inc. in the United States adjusted its app store fee system for the European Union region, stating that this adjustment would help avoid a hefty fine from EU regulators.
On the 26th, Apple announced a series of rule changes for the Apple app store in the European Union region, including providing developers with more options and guiding users to purchase more affordable products outside the Apple app store. The new rules have designed a complex fee system for app developers, with some now required to pay three separate fees for each download completed. Additionally, Apple will introduce new rules for all application developers in the European Union region, including a “core technology commission,” which means a 5% fee is charged on all digital transactions outside the Apple app store.
It is understood that the 26th was the last day for Apple to respond to allegations of violating EU digital competition rules, and the company’s rule adjustments were made to avoid facing daily fines of up to 50 million euros. The EU has not yet mentioned whether Apple has been exempted from the fines, indicating that it is assessing whether the new terms comply with the EU’s Digital Markets Act.
Apple’s revenue comes from a 15% to 30% commission on app downloads through its app store, one of its core profit sources.
The EU had previously prohibited applications from being distributed and promoted through channels other than the App Store, a practice deemed by the EU as restricting competition.
In April this year, the European Commission found Apple in violation of the Digital Markets Act and decided to impose a fine of 500 million euros on it. At the same time, it demanded Apple implement rectification within a specified deadline or face an additional daily high fine. Apple has already paid the 500 million euro fine but plans to appeal against this decision on July 7.
In recent years, the EU has taken frequent actions in the field of antitrust, imposing hefty fines on major tech companies. This includes a penalty of over 8 billion dollars against Google’s parent company Alphabet, as well as an order requiring Apple to pay 13 billion euros in taxes to Ireland. Additionally, based on regulations related to market dominance abuse, the EU has implemented a series of measures: forcing Amazon to adjust e-commerce platform rules, promoting Apple to open “QuickPay” chip technology, and investigating Microsoft’s Teams meeting software.
Cover image source: News
Comprehensive financial news from Daily Economic News, Cailian Press, and Interface News