Technology

Apple’s €500M EU Fine Could Grow if App Store Changes Fall Short

Apple’s €500M EU Fine Could Grow if App Store Changes Fall Short

No one really likes to admit defeat, especially if it has the potential to have a negative financial impact. This is why Apple tried to get around its lawsuit in the EU. However, Apple’s bare minimum efforts did not cut it, leading to fines in the EU. But has Apple finally decided to play nice?
EU wants to see if Apple deserves more fines
According to a report from Politico, the European Commission is currently in the final stages of surveying whether Apple made enough changes in the App Store. This is to ensure that the company’s changes are in compliance with the EU’s Big Tech rules. If not, there is a chance Apple could be hit by daily fines in the EU.
According to a spokesperson for the European Commission, “We can confirm that we have sent Requests for Information (RFIs) to app developers to gather feedback on the latest changes that Apple has made to the app store rules to comply with the Digital Markets Act.” The report says that there doesn’t seem to be a timeframe where the EU needs to decide on whether Apple has complied with the rules. However, the Commission did previously threaten that companies that breach the rules can be fined retroactively. This means that Apple could still be hit with fines even if they eventually get around to complying.
What’s the backstory?
In case you’re hearing about this for the first time, earlier this year, the EU hit Apple with a massive €500 million fine. This came on the back of a ruling by the EU that said it violated the regions’ Digital Markets Act. This forced Apple to make some changes to its App Store. Apple claimed it did, but the EU found that it wasn’t sufficient.
Apple’s initial proposal included a tiered Store Services Fee, a new Initial Acquisition Fee, and a Core Technology Commission. According to critics, this is basically Apple rebranding its existing policy. Some developers criticized Apple’s so-called “changes”, saying it is a “draconian, bureaucratic nightmare.”
Tim Sweeney, CEO of Epic Games, also said, “Using these apps will be an intentionally miserable experience for users and a commercial failure for developers.” Apple has long been criticized by developers over its App Store fees. Not only does Apple take a massive cut, but previously, it also prevented developers from informing users through the app that there are alternative payment methods.
This is why some apps such as Amazon Kindle, does not allow users to buy ebooks through the app itself. Instead, users have to go directly to Amazon, make the purchase there, then sync it with the app.