Latest news with #CoreTechnologyFee
Yahoo
15 hours ago
- Business
- Yahoo
Apple's EU Talks Enter Critical Phase
Apple (NASDAQ:AAPL) scrambles to avert hefty EU fines as its 60-day Digital Markets Act deadline looms this Thursday. Negotiations in Brussels are reportedly focused on loosening App Store steering rulesletting developers point users to external purchase optionsand tweaking the Core Technology Fee that kicks in after a million installs. In April, the European Commission slapped Apple with a 500 million fine for blocking cheaper app-linking alternatives, with penalties set to climb up to 5 % of average daily global revenue if noncompliance persists. Meta Platforms (NASDAQ:META) faces a similar crunch, having already paid a 200 million fine and adjusted its ad-model terms to sidestep fresh charges. Apple plans to offer concessions that could buy more time to meet DMA requirements, even as it vows to appeal the initial sanction and accuses regulators of moving the goalposts. EU officials are weighing whether those concessions satisfy the spirit of the law or merely delay enforcement. Meanwhile, developers and privacy advocates are watching closelyany carve-outs for steering or fee adjustments could reshape the App Store's economics and user experience across Europe. Why It Matters: The outcome will set a precedent for how Big Tech meets Europe's push for platform opennessand could ripple through Apple's revenue streams and app ecosystem worldwide. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Indian Express
16 hours ago
- Business
- Indian Express
Apple in talks to avoid further EU fines with new App Store changes: Report
Apple is currently in last-minute negotiations with Brussels regulators in order to avoid further penalties under the European Union's Digital Markets Act (DMA). Initially, the tech company was fined 500 million euros (approx. ₹4900 cr) for violations of the DMA. It was subsequently given a 60-day deadline to comply with the legislation. This deadline expires on Thursday, 26 June, but no changes have been announced to Apple's App Store guidelines yet. The initial 500 million-euro fine was based on App Store's anti-steering policies that prohibit developers from communicating with users about payment options outside of the App Store. While developers are permitted to show users a single link to their website, Apple reportedly takes a 27 per cent commission on any payments made through the provided link. The European Commission has suggested that Apple might not face any additional penalties, as the two sides have been in discussions about rectifying the situation. These discussions also involved the Core Technology Fee (CTF) put in place by Apple, where app developers pay €0.50 for each first annual install after one million downloads, according to FT. However, it is expected that Apple will announce minor concessions to secure more time and subsequently gauge potential changes before announcing a final decision. The European Commission would then likely review the changes and determine whether they comply with the Digital Market Act before penalising Apple. It is unclear what changes Apple is expected to roll out. A potential change could be the permitting external payment links on the App Store without commission or altering the CTF regulations currently in place. The iPhone-maker has also been charged with breaching DMA rules on the grounds it hindered users from sideloading, a practice that involves downloading alternative app stores and apps from the web. The EU fines could also stoke tensions with US President Donald Trump who has threatened to levy tariffs against countries that penalise companies based in the country. The Trump administration has called these fines a 'novel form of economic extortion' that the US will not tolerate. 'We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values,' EU antitrust chief Teresa Ribera has previously been quoted as saying by Reuters. Apple has avoided a fine in a separate investigation into its browser options on iPhones after making changes that allow users to switch to a rival browser or search engine more easily. Regulators said these comply with the DMA and closed the investigation in April this year.
Hindustan Times
24-04-2025
- Business
- Hindustan Times
Apple may have to pay over $500 million penalty due to ‘restrictive' App Store policies
Apple has been fined €500 million (around $570 million) by the European Commission for violating the Digital Markets Act (DMA), marking the first major penalty under the new regulation. The fine centres on iPhone maker's App Store policies, which the Commission says prevented app developers from freely steering users toward alternative purchasing options outside the App Store. The DMA requires that developers be allowed to inform users about and direct them to external purchasing methods—without any charge or restriction. However, the Commission has found that Apple's current policies, including fees imposed on external payments, effectively discourage such alternatives. Apple charges developers over 17% commission on transactions made outside its platform, a practice seen as incompatible with the DMA. The Commission stated the fine amount reflects the "gravity and duration" of Apple's non-compliance. Although specific breaches were not itemised in the announcement, the Commission concluded that developers "cannot fully benefit from the advantages of alternative distribution channels outside the App Store.' In addition to the fine, Apple has been ordered to eliminate technical and commercial restrictions that limit app developers' ability to steer users towards other payment options. This could lead to significant changes to the company's App Store rules across the European Union. Furthermore, the Commission has issued a preliminary assessment that Apple's support for third-party app marketplaces is also inadequate. It cited the Core Technology Fee—charged to developers even when distributing apps outside the App Store—and overly complicated user processes as barriers that undermine genuine competition. Apple has the opportunity to respond to this preliminary decision before any additional penalties are confirmed. In a small win for Apple, the Commission did find that recent updates to iOS concerning user choice over default apps met regulatory expectations. These include changes such as allowing users to select default web browsers and messaging apps, as well as enabling the full removal of built-in apps like Safari.
Yahoo
27-01-2025
- Entertainment
- Yahoo
Epic Games to cover some iOS fees in ongoing war with Apple
Epic Games had previously announced plans to bring third-party games to its mobile app, which is available worldwide on Android devices and on iOS in the European Union. The company will also offer a rotating selection of titles for free on mobile. Bloons TD 6 and Dungeon of the Endless: Apogee will be the first two free titles. In a post on X, Epic said it was still fixing some bugs before launching the new games on its platform. But the company made waves today with a move that could encourage popular games to join its free games program. Epic plans to cover the cost of the Core Technology Fee on iOS for participants' first year. Apple charges a CTF of 50 euro cents for any install of an iOS app once it surpasses 1 million annual downloads and uses a third-party store. Apps with global revenue of less than €10 million have a three-year grace period. A blog post from Epic and shared with The Verge says that covering the fees "is not financially viable for every third party app store or for Epic long term, but we'll do it while the European Commission investigates Apple's non-compliance with the law." The law in question is the Digital Markets Act, a digital competition law in Europe which has already targeted Apple. Fees levied by Apple and Google for use of their platforms has been a source of great debate in the tech and gaming spheres. Epic Games has been in conflict with Apple several times over the years, alleging the tech giant has engaged in anti-competitive behavior.
