Apple and the EU engage in final negotiations over App Store rules, possibly making concessions to avoid hefty penalties
Reports indicate that Apple is expected to make concessions regarding its "guidance" clause, which previously prevented users from accessing promotional information outside of the App Store. If Apple fails to comply with EU regulations by the Thursday deadline, it could face hefty fines of up to 5% of its global daily revenue. The discussion also touched on the issue of Apple's "core technology fee."
Apple is in last-minute emergency negotiations with the European Commission, trying to avoid a series of escalating fines set to take effect by modifying App Store rules.
According to media reports on the 23rd citing informed sources, Apple is expected to make concessions regarding its "guidance" clause, which previously prevented users from accessing promotional information outside the App Store.
After imposing a €500 million fine on Apple, EU regulators demanded that the company modify its rules within two months. If Apple fails to comply with EU regulations by the Thursday deadline, it will face new fines. These fines could escalate over time, potentially reaching up to 5% of its global daily revenue.
Giants Face Compliance Challenges
Sources familiar with the negotiations revealed that Apple is expected to announce some concessions to buy more time, as the European Commission will first assess these adjustments before making a final decision.
Participants in the negotiations indicated that discussions also touched on Apple's "core technology fee." This fee requires developers to pay for each installation annually after app downloads exceed 1 million. The EU has been reviewing these commercial terms since June of last year and may choose to further investigate or drop the inquiry.
Notably, this decision comes as U.S. President Trump is set to visit Europe this week for the NATO summit in The Hague, while Brussels and Washington are approaching the July 9 deadline for a trade agreement.
The EU's regulations targeting large tech companies have been a major point of contention between Brussels and Trump. Trump has previously likened the EU's fines to "overseas extortion," calling it "a form of taxation."
This Thursday, in addition to handling matters related to Apple, the European Commission will also need to determine whether Meta's adjustments to its free personalized advertising model, announced in November 2024, can effectively avoid the new fines stipulated by the Digital Markets Act.
The European Commission confirmed that it is in close contact with Apple, "discussing effective compliance matters," but cannot speculate on any potential outcomes before the June 26 deadline. The Commission added that if Apple continues to violate its obligations under the Digital Markets Act, "the Commission has ample regulatory powers at its disposal."
