Apple Reportedly Negotiating to Stave Off EU App Store Fines

Core Points - Apple is in negotiations with European regulators to avoid escalating fines related to the EU's Digital Markets Act (DMA) [2][3] - The company has already incurred a fine of 500 million euros for violating the DMA [2] - Apple is expected to offer concessions regarding its "steering" provisions that limit user access to offers outside the App Store [2][4] Regulatory Context - The European Commission (EC) has mandated Apple to revise its rules within two months of the fine, with a compliance deadline set for July 26 [3] - If Apple fails to comply, fines could escalate to 5% of its average daily global revenue [3] - The EC is working closely with Apple to ensure effective compliance but has not speculated on the outcome before the deadline [5] Financial Implications - Discussions have included Apple's "Core Technology Fee," which charges developers for annual installs after 1 million downloads [4] - The company faces a growing list of regulatory challenges in Europe, including a 1.8 billion euro fine in 2023 for practices harming music-streaming competitors [6] Industry Landscape - Other American tech giants, such as Google, Amazon, and Microsoft, are also facing significant regulatory scrutiny and fines in the EU [7]