EU cautions Apple of severe penalties if App Store changes fail to meet rules

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Apple Faces Strict Consequences on Violation of New EU Regulations

EU’s bloc industry chief warns Apple of stringent penalties if the corporation’s changes to its App Store fail to meet the requirements of the forthcoming regulations of the Digital Markets Act (DMA) by the European Union.

Apple Brings Changes to its App Store

In compliance with the EU’s impending DMA, Apple has made an announcement about its plan to allow software developers to distribute their applications on Apple devices through alternative app stores. Starting from 7 March, developers will have the ability to propose alternate app stores on iPhones and will have the choice of not using Apple’s in-app payment system. As of now, this system charges commissions of up to 30%.

Apple’s Adjustments Faces Criticism Despite Modifications

Despite Apple making these modifications, there are critics arguing that Apple’s fee structure is still unjust and possibly in violation of the DMA. Reacting to Apple’s plans, Thierry Breton, the EU industry chief, in a conversation with news come from source of Reader Wall, stated, “The DMA’s intention is to increase competition and to create fair and open digital markets.”

EU’s New Rules and Regulations

Under the new regulations by the European Union, developers will still need to submit their apps to Apple for a review based on cybersecurity risks and potential fraud. Moreover, EU’s Apple device users will have the advantage of choosing default web browsers and apps for contactless payments, allowing them to make payments without being bound to use the Apple Pay system.

Apple’s “Core Technology Fee”

Despite developers having the alternative to not use Apple’s App Store and payment system, a mandatory “core technology fee” of 50 euro cents per user account annually will still be charged. According to Apple, this fee is applicable only to developers who opt into the new business terms.

Apple estimates that under the new conditions, 99% of developers in the European Union will either lower or keep their fees payable to Apple the same. Big corporations such as Meta and Spotify, with millions of free users, are expected to be more significantly affected. As of now, both companies have not made any official comments on this issue.

However, Thierry Breton emphasizes that if the proposed solutions by Apple are found lacking, the EU will not hesitate to take strict action against them.

Extra inputs provided by the source of Reader Wall.


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