Facing EU deadline, Apple announces App Store changes

Apple announced changes to its App Store payment rules in Europe as it hit a Thursday deadline to address accusations of breaking EU digital competition rules -- or face steep new daily fines.

The European Commission in April slapped Apple with a fine of 500 million euros ($586 million) after concluding it prevented developers from steering customers outside its App Store to access cheaper deals in violation of the bloc's rules.

The EU warned Apple it had 60 days -- until Thursday -- to make changes to comply with the rules or face additional "periodic penalty payments", which it believed could be more than 50 million euros daily.

Apple has changed the rules on the App Store effective Thursday, allowing developers to offer different payment options directly to consumers within their apps, arguing that the changes address the EU's concerns.

Apple has paid the 500-million-euro fine but still plans to appeal the penalty on July 7 -- and it hit out on Thursday at the extent of the changes sought by Brussels.

"The European Commission is requiring Apple to make a series of additional changes to the App Store. We disagree with this outcome and plan to appeal," Apple said.

EU spokesman Thomas Regnier said the commission took note of Apple's announcement "and will now assess these new business terms" to see if they are compliant with the bloc's Digital Markets Act (DMA).

"As part of this assessment the commission considers it particularly important to obtain the views of market operators and interested third parties before deciding on next steps," Regnier added.

Apple has frequently hit out at the DMA antitrust rules, complaining it has no choice but to make the changes under threat of large fines.

The EU reinforced its legal weaponry in recent years with major twin laws, the Digital Services Act and the DMA, which have provoked the ire of President Donald Trump.

The US leader has slammed the EU's digital laws and taxes as "non-tariff barriers" to trade and many tech CEOs have aligned with his administration.

The EU and the United States are currently locked in negotiations to avoid Trump's sweeping tariffs on European goods but Brussels has insisted that the digital rules are a red line for the 27-country bloc.

raz/ec/del/phz

© Agence France-Presse

Source: AFP