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Apple’s New Developer Fees Face EU Antitrust Scrutiny

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Apple’s newly introduced fees for app developers are drawing heightened scrutiny from European Union (EU) antitrust regulators, according to a Bloomberg report on Monday. The investigation centers on Apple’s new “core technology fee,” which charges developers €0.50 ($0.51) per app installation, raising concerns about potential cost inflation for software makers.

The EU regulators have reportedly distributed a fresh round of questionnaires as part of their inquiry, examining whether the new fees align with the bloc’s Digital Markets Act (DMA). The DMA, aimed at curbing the power of major tech platforms, restricts certain practices and imposes fines of up to 10% of a company’s annual revenue for violations.

Key Concerns Under Investigation

Officials are investigating whether Apple’s fee structure might result in higher costs for consumers or force developers to alter their business models. They are also questioning Apple’s claim that the new system will reduce costs for developers.

The timing of this scrutiny coincides with calls from Big Tech leaders in the U.S. for President-elect Donald Trump to push back against the EU’s regulatory actions targeting American technology firms.

Apple’s Regulatory Challenges

Apple has been under increasing pressure from regulators in both the U.S. and Europe over the fees it imposes on third-party developers using its App Store. While Apple maintains that 85% of developers on its platform pay no commission, the newly introduced fees have raised fresh concerns about compliance with the DMA.

Shares of the Cupertino-based tech giant fell by 1.8% in early trading following the news. Neither Apple nor the European Commission provided immediate comments on the matter.

 

EU Reassesses Tech Probes Into Apple, Google, and Meta Amid Regulatory Review

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The European Commission is reevaluating its ongoing investigations into tech giants Apple, Meta, and Google under the Digital Markets Act (DMA), according to a report by the Financial Times on Tuesday. The review comes as the implications of U.S. President-elect Trump’s upcoming presidency have reportedly added a new dimension to the regulatory scrutiny.

Sources cited by the Financial Times clarified that Trump’s election victory did not directly trigger the review but is being considered in its context. The ongoing reassessment could result in changes to the scope or intensity of investigations launched since March 2024 under the DMA, the EU’s stringent framework designed to curb market dominance by major tech platforms. This legislation allows for penalties of up to 10% of a company’s annual revenue for violations.

While technical work on the cases will proceed, decisions and potential fines have been paused until the review concludes. Regulators are said to be awaiting political guidance before making final determinations regarding the cases against Apple, Meta, and Google.

The DMA, which took effect in 2022, aims to ensure a level playing field for smaller competitors and to curtail monopolistic practices by Big Tech companies. However, the review’s outcome could reshape how the regulations are enforced.

Meanwhile, Meta recently announced it would discontinue its U.S. fact-checking program as part of a broader overhaul of its content moderation strategies, potentially signaling a shift in approach under CEO Mark Zuckerberg to align more closely with the incoming U.S. administration.

Additionally, Bloomberg News reported that the EU may expand its investigations to include allegations against Elon Musk’s social media platform, X, for potentially breaching EU content moderation rules.

Apple, Meta, Google, and the European Commission have not yet commented on the review or related developments.

 

EU Assesses Big Tech Cases Ahead of Trump’s Arrival

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The European Commission affirmed on Tuesday that it is proceeding with its investigations into U.S. Big Tech companies, including Apple, Alphabet, X, and Meta, and stressed that President-elect Donald Trump’s return to the White House would not alter its commitment to enforcing European laws. The EU has been at the forefront of examining whether these companies have violated laws designed to prevent them from gaining an unfair advantage over competitors.

Trump, who will begin his second term on Monday, has been critical of several European policies, while his ally Elon Musk has clashed with EU regulators on multiple occasions. Reports surfaced on Tuesday suggesting that Brussels might reassess its ongoing investigations of Big Tech, potentially scaling back or altering the scope of the probes at the request of U.S. companies seeking Trump’s intervention.

However, Henna Virkkunen, the EU commissioner responsible for policy, reassured Reuters that investigations are proceeding as usual and no decisions have been made to suspend them. A spokesperson for the European Commission emphasized that the assessments were routine and unrelated to Trump’s upcoming presidency. The focus of these assessments is on evaluating the progress of cases, the allocation of resources, and the overall readiness of investigations.

U.S. tech companies have long complained that European regulations stifle innovation and impose hefty fines. Meta CEO Mark Zuckerberg recently urged Trump to intervene and prevent further fines from the EU. He likened the EU’s competition enforcement to a “tariff” on U.S. firms. The Digital Markets Act (DMA), Digital Services Act (DSA), and the EU AI Act have drawn particular criticism from tech industry leaders, including Musk, who was scrutinized earlier this month after hosting controversial figures on his X platform.

The EU’s investigations, which can take several years, have already resulted in significant penalties. Last November, Meta was fined nearly 800 million euros ($821 million) for anti-competitive practices. Ongoing investigations into X, Apple, and Alphabet have yet to reach a conclusion.

In the face of criticism, Thierry Breton, the former EU industry chief, urged that the Commission resist efforts to weaken its regulations, asserting that regulation is not censorship.