Tech Giant Under Fire: EU Probes Apple’s New App Fees
The European Union’s antitrust regulators are taking a closer look at Apple’s new fees for app developers, citing concerns that they could drive up costs for software makers. This latest scrutiny comes as Big Tech executives urge President-elect Donald Trump to challenge the EU’s regulatory oversight of American tech firms.
A New Charge for Developers
Apple introduced a new “core technology fee” of 0.50 euros ($0.5102) per installed app to comply with the EU’s Digital Markets Act (DMA). The DMA sets boundaries for the world’s largest tech platforms, with fines of up to 10% of a company’s annual revenue for non-compliance.
Regulators Raise Questions
EU regulators are investigating whether Apple’s new fee structure could be passed on to consumers or force developers to revamp their business models. They’re also questioning the accuracy of Apple’s claim that the new system will reduce costs for developers. The Cupertino, California-based company has faced mounting pressure from regulators in the U.S. and Europe over its App Store fees.
Apple’s Defense
Apple argues that 85% of developers on its App Store don’t pay any commission at all. However, regulators remain skeptical, and Apple’s shares took a 1.8% hit in early trading.
A Broader Context
This latest development comes as the EU ramps up its regulatory scrutiny of American tech firms. Big Tech bosses are pushing back, urging President-elect Trump to challenge the EU’s oversight. As the tech industry continues to evolve, one thing is clear: the stakes are high, and the EU is watching closely.
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