If in terms of hardware, European regulators forced Apple to switch to using a unified USB-C port to charge its mobile devices, then in terms of software, their requirements extended to democratizing developer access to the App Store and reducing commissions. As it turns out, Apple’s new tariff policy still raises questions among EU authorities.
Image source: Unsplash, Maria Shalabaeva
In any case, as Bloomberg notes, as part of a new investigation, the European Commission is demanding clarification from Apple regarding the “basic technology fee” introduced by the company in the amount of 50 euro cents for each instance of an installed application. This new tribute must be paid to Apple by application developers who place their products in the App Store. EU regulators believe such fees could become burdensome for app developers. At the same time, American tech giants are trying to find support from Donald Trump in an attempt to protect their commercial interests in the European Union. Local legislation has recently established huge fines for violations of antitrust laws and data protection.
The European Commission is conducting a survey of application developers as part of a new stage of the investigation concerning the results of reforming the previous system of mutual settlements between Apple and software developers for the App Store. Apple chose to replace the previous commissions, which reached 30% of the user’s payment to the developer, with a combination of a reduced commission rate and additional payments. The European Commission is trying to understand how Apple’s new tariff policy can affect the costs of software users, whether developers can easily survive the transition to the new payment system with Apple, and whether it really allows them to reduce their costs of promoting their products, as the company claims.
If regulators conclude that the new system of commissions and payments for developers violates European law, Apple may be forced to reconsider its relationship with developers. In case of disobedience, Apple may be subject to a fine of up to 10% of annual worldwide revenue. The company has already had to open up its proprietary contactless payment system to third-party developers, using hardware solutions built into the iPhone. Perhaps, with Trump as US President, it will be more difficult for European authorities to put pressure on American companies in the technology sector, which are reluctant to give up their habits in order to comply with European legislation.