Apple seems to be racing against the clock. Just two months after being hit with a hefty 500 million euros fine for failing to comply with the Digital Markets Act (DMA), the California-based company is reportedly in ‘last-minute negotiations’ with the European Commission, according to a report released on Monday by the Financial Times. The goal is to fend off a new wave of penalties as the compliance deadline looms this Thursday, June 26.
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A Warning Ignored
The fine issued in April was centered on the restrictions Apple placed on app developers. These restrictions prevented them from freely informing users about alternative payment methods outside of the App Store. This practice was deemed a competitive hindrance by Brussels.
Since then, Apple has indeed allowed developers to include an external link to their websites for payments. However, the company still takes a 27% commission on transactions made through these links—a measure that many observers believe contradicts the spirit of the DMA.
Additionally, Apple charges European developers a basic technology fee (CTF) of 50 cents per download per year, another provision closely scrutinized by the Commission.
A Potential Strategic Shift?
Despite the looming deadline, Apple has not announced any significant changes to its App Store guidelines in the European Union. However, according to the Financial Times, the company is expected to announce some imminent concessions
regarding its anti-steering policies, which restrict developers from redirecting users to external payment methods outside of the App Store.
These last-minute negotiations seem to focus on both external payment methods and the controversial fees. Apple’s aim: to convince the Commission that it now fully complies with the DMA, and to avoid further penalties.
The Commission Remains Cautious
From its side, Brussels confirms it is in close discussions with Apple
on ways to ensure effective compliance
with the law. However, it refuses to speculate on the outcome of the discussions before June 26, while reminding that it holds extensive regulatory powers
in case of continued non-compliance.
If Apple’s expected concessions prove insufficient, the Commission might initiate a new infringement procedure, potentially resulting in new fines that could reach up to 10% of the company’s global annual turnover, or even 20% in the event of repeat offenses.
In the backdrop, Apple’s dispute with Epic Games in the United States highlights the global regulatory pressures the company faces. In this context, a more lenient European compliance could be a major strategic turn, but it could also weaken the business model of a long-locked App Store.
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