Report: Apple in last-minute talks with EU to avoid additional fines over App Store rules

Apple is in active, last-minute negotiations with European Union regulators, aiming to avoid further financial penalties tied to the bloc’s Digital Markets Act (DMA). With a key compliance deadline looming on June 26, the tech giant is expected to propose new changes to its App Store practices in the EU, according to multiple reports from the Financial Times.

The ongoing discussions follow a €500 million fine levied against Apple in April for its “anti-steering” policies, which restrict developers from directing users to external purchasing options outside of Apple’s in-app payment system. The DMA, which came into force in March 2024 for companies designated as “gatekeepers,” explicitly bans such practices.

Apple has until Thursday to make additional changes or face daily fines of up to 5% of its average global turnover — potentially exceeding $50 million per day based on the company’s 2023 revenue.

At the center of the talks are Apple’s restrictions on external payment links and the controversial Core Technology Fee (CTF) — a charge of €0.50 per annual install for apps distributed outside the App Store beyond the first million downloads. The CTF, introduced alongside Apple’s alternative app marketplace framework in iOS 17.4 earlier this year, has faced criticism from developers and scrutiny from the Commission.

While Apple’s current EU guidelines allow developers to include one external link for payment, the company charges a 27% commission on purchases made through those links. This model has raised concerns over whether Apple’s compliance measures are effectively meeting the DMA’s standards for fair competition and consumer transparency.

The European Commission confirmed that it is in “close contact” with Apple and emphasized that all regulatory tools remain on the table if Apple fails to meet its obligations. While it’s possible that no new fines will be announced immediately after the June 26 deadline due to the ongoing dialogue, enforcement actions remain likely if proposed changes fall short of the legal requirements.

Specifics of Apple’s expected concessions have not yet been publicly disclosed, but the changes are likely to address both anti-steering provisions and the Core Technology Fee. The outcome of these negotiations could have broad implications for app developers operating in the EU and may set precedents for Apple’s conduct in other regions facing similar regulatory pressure.