Apple to Make App Store Changes to Avoid EU Fines

Apple made changes to its App Store policies to comply with the European Union’s Digital Markets Act. The vendor is thus trying to avoid more fines on top of a $500 million penalty earlier this year.

Following two months of negotiations, the iPhone maker announced measures, proposing new fee structures to make it cheaper and easier for developers to direct customers away from the Apple App Store to make payments. Other changes include giving developers in the EU more ways to promote alternative payment options on stores, websites, and apps away from the Apple ecosystem. Developers will also have more freedom to use their own language in promotions, after previously having to follow specific instructions from the company.

By changing the terms, Apple hit the EC’s deadline to propose changes to comply with the DMA legislation designed to reduce the dominance of big technology companies in the bloc. If Apple had not made the changes in time, it could have been in line for escalating fines, with the potential to hit up to 5% of average global daily revenue.

However, the Financial Times reported that there are still disagreements between the two parties, and further negotiations are required. A company representative told FT that the European Commission is requiring Apple to make a series of additional changes to the App Store, which the company disagrees with, and plans to appeal. An EC representative told the outlet it is reviewing Apple’s current proposals for DMA compliance and would obtain views of market operators and third parties before deciding on the next steps.