EU examines whether Apple has enacted sufficient measures to evade daily penalties
In a recent development, tech giant Apple has proposed changes to its App Store rules in an attempt to comply with the European Union's (EU) Digital Markets Act (DMA). However, these changes have sparked controversy among developers and regulators alike.
The proposed terms by Apple contrast with a U.S. court order in the spring, which required Apple to remove all anti-steering language from its contracts. This move has raised questions about Apple's commitment to fair competition.
Critics, including developers such as Epic Games and Spotify, have accused Apple of restricting them from directing users to offers and payment options that avoid high fees. Tim Sweeney, CEO of Epic Games, called the proposed terms an intentionally miserable experience for users and a commercial failure for developers.
Apple, however, believes its proposed changes would be sufficient for DMA compliance. The specific details of these changes are yet to be disclosed.
In April, Apple was fined €500 million by the European Commission for breaching the EU's DMA. The nature of the breach that led to this fine remains undisclosed.
The European Commission is currently surveying whether Apple's proposed app store changes comply with the EU's Big Tech competition rules. The Commission has sent out confidential questionnaires to business users and interested parties last month to gather feedback on Apple's proposed changes. This is the first time the Commission has market-tested a fix in a DMA non-compliance case.
In response to criticism, Apple's executive described the proposed remedy for the DMA violation as 'the result of a complex and lengthy discussion with the Commission.' Apple's June proposal for new terms for developers, with different tiers for different sets of users, has been criticized as a 'draconian, bureaucratic nightmare' by some developers.
The EU has given respondents until Monday to provide feedback on Apple's proposed new terms for developers like Spotify and Meta. Apple's proposed changes follow discussions between the company and the Commission's services in late June.
It's important to note that the EU has not set a specific timeframe for deciding on Apple's compliance with the EU's Big Tech competition rules. Apple has previously stated that it disagrees with the outcome of the investigation and intends to appeal the Commission's decision.
This article has been updated to add comment from Apple, which stated that its proposed changes are designed to provide more flexibility and choice for developers while maintaining a safe and trusted environment for users.
The search results do not contain information on the name of the person within Apple who engaged in liaison discussions with the EU Commission about a possible reform package for App Store rules.
A counsel for Spotify stated that the terms would not allow it to roll out the latest version of its app. The Commission has sent Requests for Information (RFIs) to app developers to gather feedback on the latest changes Apple has made to the app store rules to comply with the Digital Markets Act.
As the investigation continues, the future of Apple's App Store rules remains uncertain. Stay tuned for more updates on this developing story.
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