Tech giant Apple is reported to in late negotiations with the European Commission (EC) to avoid hefty fines over its App Store practices, as the deadline to comply with the Digital Markets Act (DMA) rapidly approaches.
The tech giant is under pressure to revise its App Store rules by 26th June or face escalating penalties, Financial Times (FT) reported. The latest development comes after a €500 million penalty was issued to the iPhone maker earlier this year for breaching the DMA, with regulators urging Apple to revise its rules that restrict developers from directing users to external offers or alternative payment options outside the App Store.
The EC had given Apple two months to make changes after issuing the initial fine. Sources indicated that Apple is preparing to offer concessions aimed at delaying further penalties and buying more time as changes are reviewed by the EC. If the EU watchdog finds that Apple remains non-compliant, penalties could reach up to 5 per cent of its average daily global revenue.
Discussions have also touched on Apple’s Core Technology Fee, which charges developers per annual installation after their app surpasses 1 million downloads. The EU has been examining this fee structure since last year and may or may not proceed with its investigation depending on Apple’s revised terms.
Source: Mobile World Live
Image Credit: Stock Image/Apple
