European Commission Expected to Accept Apple's Changes to App Store

Core Viewpoint - The European Commission is likely to accept Apple's proposed changes to its App Store rules and fees, which would eliminate the risk of daily fines from the antitrust regulator [1][2]. Group 1: Regulatory Context - The European Commission ruled in April that Apple violated the Digital Markets Act (DMA) by preventing app developers from promoting cheaper deals outside of its App Store, resulting in a fine of 500 million euros (approximately $587 million) [3]. - Apple was given 60 days to modify its policies to comply with the DMA following the ruling [3]. Group 2: Proposed Changes by Apple - Apple announced in June that it would implement changes allowing developers to pay a 20% processing fee for purchases made in the App Store and a 5% to 15% fee for directing customers to external payment options [4]. - The changes would also permit developers to provide links to alternative payment methods [4]. Group 3: Potential Consequences - If the European Commission had rejected Apple's changes, it could have imposed daily fines amounting to 5% of Apple's average daily worldwide revenue [4]. - Apple has previously expressed that the European Commission's actions are unfair and detrimental to user privacy and security, and it has appealed the fine, claiming it is unlawful [5].