Apple Negotiates with EU to Dodge App Store Fines

Apple is in last-minute negotiations with the European Commission to avoid new fines over its App Store practices. The tech giant is under pressure to revise its App Store rules by Thursday, 26 June, or face escalating penalties.

The latest development comes after a €500 million penalty was issued to the iPhone maker earlier this year for breaching the Digital Markets Act (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% 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. An EC spokesperson reportedly confirmed it was holding talks with Apple to discuss effective compliance, adding it would not comment on the potential outcome ahead of the deadline. Meanwhile, Apple declined to comment.

The talks come as US President Donald Trump arrives in Europe for a Nato summit, with digital regulation remaining a key point of contention in the EU’s relations with the US. Trump has also previously criticized EU tech fines as “overseas extortion”. The EC also gears up to announce on Thursday its decision on the compliance of Meta’s new personalized ad model with the DMA.