App Store overhaul may save Apple from daily EU fines: Here's how
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Reportedly, the iPhone maker introduced a revised fee structure last month in response to pressure from the European Commission, which had previously imposed a €500 million fine for breaching the bloc's Digital Markets Act (DMA). The Commission had accused Apple of limiting developers' ability to inform users about alternative, potentially cheaper, payment options outside the App Store.
Under the new framework, developers making sales through the App Store will be charged a 20 per cent processing fee, with small businesses benefiting from a reduced rate of 13 per cent. Meanwhile, those directing users to external payment methods will face fees ranging from five per cent to 15 per cent. Apple will also allow developers to include multiple links guiding users to third-party payment platforms, an option previously restricted.
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The reforms come after EU authorities gave the company a 60-day window to comply with the DMA or risk punitive fines. Had Apple failed to act, it could have faced daily charges of up to five per cent of its global turnover, equivalent to roughly €50 million per day.
While the European Commission has not yet issued a final verdict, sources suggest a green light could be granted in the coming weeks. However, the regulator has indicated it is still carefully reviewing the proposed measures. 'All options remain on the table. We are still assessing Apple's proposed changes,' a Commission spokesperson said.
Apple has maintained that its actions are aimed at complying with EU law and avoiding further penalties, though it has publicly criticised the Commission for seeking to dictate how it manages its digital marketplace.
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(With inputs from Reuters)
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