
Apple introduces new App Store fees in EU to avoid €500 million fine
Apple has introduced sweeping changes to its European Union
App Store
policies, introducing a complicated multi-tier fee system aimed at avoiding crushing daily fines that could reach €50 million under the bloc's Digital Markets Act (DMA).
The company now allows EU developers to freely link customers to
alternative payment methods
outside the App Store without restrictive warning screens or mandatory text. However, these freedoms come with new costs through Apple's revamped commission structure.
New fee framework creates multiple payment tiers
Under the updated system, developers face up to three separate fees for a single app download. Apple introduced a "
Core Technology Commission
" of 5% on all digital purchases made outside the App Store, alongside an initial acquisition fee of 2% and variable store services fees ranging from 5% to 13%.
The company also created a two-tier service structure. Tier 1 offers basic features like app reviews and fraud protection for a 5% commission, while Tier 2 provides full App Store benefits including automatic updates, marketing tools, and app insights for 13%. Small Business Program participants receive reduced rates.
Apps using external payment links will pay the Core Technology Commission, while those merely referencing outside deals continue under the existing Core Technology Fee of €0.50 per download after one million installs.
Regulatory standoff continues despite changes
Apple's modifications follow a €500 million fine imposed in April for violating DMA anti-steering rules. The European Commission threatened additional daily penalties worth up to 5% of Apple's global revenue if the company failed to comply by June 26.
"We disagree with this outcome and plan to appeal," Apple stated, maintaining its opposition to the regulatory requirements.
Epic Games CEO Tim Sweeney, whose company successfully challenged Apple's US steering policies, criticized the changes as "malicious compliance" that commercially cripples competing payment systems.
The European Commission will now assess whether Apple's proposals achieve genuine DMA compliance before determining if additional fines are warranted.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
19 minutes ago
- Economic Times
After Canada, now US: College graduates face the toughest job market in decades – what's gone wrong?
Recent college graduates are facing a challenging job market, with unemployment rates among young degree holders reaching a decade high. Economic uncertainty, AI disruption, and a surplus of graduates contribute to hiring freezes, particularly in tech and finance. While some sectors like healthcare and government are growing, traditional degree-heavy fields are experiencing a slowdown. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Hiring freezes, AI disruption, and economic uncertainty Degrees feel less distinctive — but still matter Tired of too many ads? Remove Ads No-hire, no-fire economy Interest Rates Are Also to Blame FAQs When Palwasha Zahid moved from Dallas to a town near Silicon Valley, she felt like she was stepping into the heart of opportunity, with major tech companies like Google, Apple, and Nvidia just a short drive away, while she was pursuing her master's degree in data analysis, she imagined her career taking off, as per a even after months since graduating in December, the 25-year-old is still unemployed as she is unable to find a job in the industry she specialised in, according to an AP report. Zahid told AP, 'It stings a little bit,' adding 'I never imagined it would be this difficult just to get a foot in the door,' as quoted in the Zahid is not alone, because young Americans graduating from college this spring and summer are entering one of the most difficult times of the job market in over a decade, as reported by to the report, among college degree holders aged between 22 to 27, the unemployment rate hit 5.8% in March, which is the highest since 2012, it's been apart from the pandemic year, and noticeably higher than the national unemployment rate of 4.2%, as per the AP even more concerning is that this gap between young graduates and the rest of the workforce is larger than it has been in more than three decades, as reported by READ: Karoline Leavitt says no enriched uranium was removed from Iranian nuclear sites prior to US attacks Economists and policy experts are pointing to many factors, like business hesitation due to economic uncertainty, especially after US President Donald Trump's tariff hikes, which are weighing heavily on new hiring, according to the report. Companies are cautious, and that's bad news for those just starting out, as per the economist at the Upjohn Institute, Brad Hersbein, said, 'Young people are bearing the brunt of a lot of economic uncertainty,' adding, 'The people that you often are most hesitant in hiring when economic conditions are uncertain are entry-level positions,' quoted AP in its possible factor is artificial intelligence. While still in its early phases of adoption, some believe AI is already squeezing entry-level white-collar roles, particularly in industries like tech, finance, and legal services, as reported by of online commerce software company Shopify, Tobi Lutke, said in an April memo that before requesting new hires, 'teams must demonstrate why they cannot get what they want done using AI,' as quoted by READ: Last chance to claim your Fortnite refund – Act fast or risk missing out on free cash Part of the difficulty stems from the sheer number of graduates as more Americans than ever now hold a four-year degree, which is 45% today compared to just 26% in 1992, making it less of a standout in the job market, according to the these challenges, economists still say college degrees provide long-term benefits, including better lifetime earnings and lower unemployment overall, as per AP job growth continues, much of it is concentrated in sectors like health care, government, and hospitality, not exactly what many degree holders trained for, according to the traditionally degree-heavy fields like IT, legal services, and accounting, job growth has slowed significantly. Cory Stahle, an economist at the job-listings website Indeed, revealed that postings for software development jobs have fallen 40% compared with four years ago, reported READ: Rocket Lab stock skyrockets past 52-week high with 13% surge - what's fueling the rise? Although layoffs remain rare, hiring has slowed to levels last seen in 2014, when unemployment was much higher, as per the report. Economists have dubbed it a 'no-hire, no-fire' economy, which is stable, but stagnant, particularly for those trying to start their career, according to the LinkedIn's head of economics for the Americas, Kory Kantenga, pointed out that the Federal Reserve's interest rate hikes have also slowed hiring in the tech industry because many IT firms expanded when the Fed lowered its short-term rate to nearly zero after the pandemic, as reported by AP. But in 2022, when the Fed began increasing rates to combat inflation, it made it harder to borrow and grow, as per the care, hospitality, and government jobs are seeing growth. Sectors like IT and legal services have slowed starting to have an effect, especially in entry-level white-collar roles. Some companies now ask whether AI can do the job before hiring a person.


Time of India
2 hours ago
- Time of India
DeepSeek faces expulsion from app stores in Germany
Academy Empower your mind, elevate your skills Germany's data protection commissioner has asked Apple and Google to remove Chinese AI startup DeepSeek from their app stores in the country due to concerns about data Meike Kamp said in a statement on Friday that she had made the request because DeepSeek illegally transfers users' personal data to two U.S. tech giants must now review the request promptly and decide whether to block the app in Germany, she did not respond to a request for comment. Apple and Google were not immediately available for to its own privacy policy, DeepSeek stores numerous personal data, such as requests to its AI programme or uploaded files, on computers in China."DeepSeek has not been able to provide my agency with convincing evidence that German users' data is protected in China to a level equivalent to that in the European Union," Kamp said."Chinese authorities have far-reaching access rights to personal data within the sphere of influence of Chinese companies," she commissioner said she took the decision after asking DeepSeek in May to meet the requirements for non-EU data transfers or else voluntarily withdraw its app. DeepSeek did not comply with this request, she shook the technology world in January with claims that it had developed an AI model to rival those from U.S. firms such as ChatGPT creator OpenAI at much lower it has come under scrutiny in the United States and Europe for its data security blocked it from app stores there earlier this year, citing a lack of information on its use of personal data, while the Netherlands has banned it on government lawmakers plan to introduce a bill that would ban US executive agencies from using any AI models developed in exclusively reported this week that DeepSeek is aiding China's military and intelligence operations.


Time of India
2 hours ago
- Time of India
Dutch government commits 70 million euros for AI plant
Academy Empower your mind, elevate your skills The Dutch government pledged 70 million euros ($82 million) on Friday for the construction of an artificial intelligence plant in the northern city of plant, which will be managed by a consortium of Dutch organisations, is intended to become a European research hub for the development of AI technologies in applications ranging from agriculture and healthcare to energy and government has also applied for European Union co-financing worth another 70 million euros for the plant, it said in a statement, potentially adding to the 60 million that the Groningen regional administration also plans to contribute."Those who do not develop the technology themselves are dependent on others. That is why we are fully committed to a strong, Dutch AI infrastructure", Minister of Economic Affairs Vincent Karremans said on the government's is looking to develop its own AI infrastructure, fearing that too much reliance on companies from an increasingly isolationist United States is a threat to Europe's economy and all goes to plan the plant will be commissioned in 2026 and will be running at full power in early 2027, the government said."This is not a luxury, but a pure necessity to maintain our digital independence and competitiveness", Karremans said.