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Apple to Propose New App Store Changes in Bid to Avoid More EU Penalties

Apple to propose new changes to the App Store in the offer to avoid more EU penalties

Apple Inc. is preparing to submit a new proposal to the antitrust regulators of the European Union by June 26, to avoid other sanctions and legal action on its controversial practices of the App Store.

This occurs only a few months after the iPhone manufacturer was sentenced to a fine of 500 million euros by the EU for having violated the strict provisions on the digital markets of the block (DMA), which aims to reduce the domination of major “goalkeepers” of technology.

According to familiar sources with the question, which has spoken to Bloomberg, the new Apple plan will allow third -party developers more easily to direct users of the App Store to make purchases – a long trip required by competitors who accuse Apple of stifling innovation and invoicing excessive commissions. The EU is particularly focused on Apple’s long-standing long-standing rules, which previously prevented developers from informing users of cheaper subscription options available outside the Apple platform.

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The expected concessions follow weeks of high -level discussions between Apple and the European Commission, which would have prepared an official accusation sheet if the company does not comply with the deadline. Although Apple and the Commission refused public comments on current talks, the proposed changes are considered to be Apple’s attempt to prevent deeper legal tangles or more severe sanctions under DMA.

In April, alongside the fine of 500 million euros from Apple, Meta was also penalized 200 million euros for having offered Facebook and Instagram users a binary model of “remuneration or consent” which was deemed not in accordance with the data protection and competition rules of the EU.

Apple said he would appeal the decision, accusing the EU regulators of having forced him to “give his intellectual property” and to unjustly target the business while exempting from others.

Global regulatory pressure

This last development adds to the regulatory problems of assembly of Apple on both sides of the Atlantic. In the United States, the company still fights against the benefits of its legal fight with Epic Games, which began in 2020 when Epic deliberately violated the Apple App Store payment rules by adding a direct payment system to its Fortnite game. Apple quickly prohibited the Fortnite of the App Store, triggering a prosecution.

Although an American court was largely stored with Apple on most of the questions, he ruled that Apple should allow developers to point users to external payment methods. This decision has since been brought several times, and a separate case carried by the United States Ministry of Justice for wider antitrust concerns is still underway.

The case of Fortnite has become a flash point in the broader global debate on the way digital markets are governed – and if dominant actors like Apple should continue to define the terms for developers who count on their platforms to reach users.

In Europe, Apple was targeted by several large -scale application measures, including a fine of 1.8 billion euros last year for alleging the rivals of musical diffusion. The regulators say that Apple’s ecosystem leaves little room for competitors to prosper, with its control over integrated payments and user data which gives it an unjust advantage.

Under the law on digital markets, which has entered into force this year, companies designated as guardians are faced not only with financial penalties of up to 10% of world annual income, but also to the threat of structural remedies – such as the breakdown of their business – if they do not comply.

Until now, the EU has already forced the changes to get out of the Amazon market and pressure on Microsoft on the grouping of teams with its office software. Google is the subject of a survey for its stack of advertising technologies, and regulators claim that a forced transfer remains a real possibility.

What’s at stake for Apple?

For Apple, the imminent deadline is essential. Failure to comply with the DMA could cause additional fines and even more strict surveillance. But more broadly, the company is forced to reassess a central pillar of its business model: the structure based on the Commission of the App Store, which generates billions per year from developer costs and integrated purchases.

Analysts say that Apple’s response could set the tone for future interactions with global regulators and potentially reshape the operation of digital platforms on the main markets.

That these latest concessions will be enough to satisfy the European Commission are not clear, but with the increasingly assertive block and other jurisdictions that look closely, Apple’s tightrm is only becoming more precarious.

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