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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.

 

Apple Fights $1.8 Billion App Store Lawsuit in Landmark UK Class Action Case

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Apple is defending itself against a mass lawsuit in the United Kingdom that accuses the company of abusing its dominant market position by charging app developers a 30% commission on App Store transactions. The case, heard at London’s Competition Appeal Tribunal, seeks up to £1.5 billion ($1.8 billion) in compensation for approximately 20 million iPhone and iPad users in the UK, who were allegedly overcharged for app purchases.

Allegations of Monopoly Practices

Rachael Kent, a British academic spearheading the lawsuit, claims Apple has generated “exorbitant profits” by maintaining a “100% monopoly” over app distribution and in-app purchases on its iOS platform. Kent’s legal team argues that Apple’s restrictive terms for developers and its high commission fees ultimately inflate costs borne by consumers. Lawyer Mark Hoskins, representing Kent, stated in court filings that Apple’s practices have stifled competition and innovation in the app ecosystem.

Apple’s Defense

Apple, however, contends that the lawsuit is meritless, arguing that the commission reflects the benefits provided by its iOS ecosystem, which prioritizes security, privacy, and seamless integration. The company claims that 85% of app developers using its platform do not pay any commission and accuses the lawsuit of disregarding its intellectual property rights. Marie Demetriou, Apple’s lawyer, argued that the demand for Apple to allow developers free use of its technology constitutes an “expropriation of property rights masquerading as competition.”

Broader Implications

This lawsuit marks the first class action-style case against a tech giant to reach trial under Britain’s evolving legal regime for collective redress. The case could set a precedent, as other major lawsuits targeting Google, Meta, and Amazon are waiting to be heard. Google is also facing a similar $1.1 billion case over its Play Store commissions in 2025.

Upcoming Testimonies and Trial Details

The trial is expected to last seven weeks, with testimony from Apple’s Chief Financial Officer Kevan Parekh scheduled later this week. The case comes amid increasing regulatory scrutiny of tech giants in both the U.S. and Europe over practices perceived as anti-competitive, especially concerning fees charged to third-party developers.

What’s at Stake?

If the tribunal rules against Apple, it could not only lead to significant financial penalties but also force the company to revise its App Store policies. Such an outcome could have a ripple effect across the tech industry, influencing how other platforms like Google Play Store operate globally.

 

Senators Request Biden to Grant ByteDance 90-Day Extension on TikTok Sale Deadline

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Democratic Senator Ed Markey and Republican Senator Rand Paul have called on President Joe Biden to extend by 90 days a looming January 19 deadline that requires China-based ByteDance to sell the U.S. assets of its popular short-video app TikTok or face a nationwide ban.

Their request comes as the Supreme Court prepares to hear ByteDance and TikTok’s legal challenge against the law mandating the sale. Arguments in the case are scheduled for January 10. In a joint letter to Biden, the senators argued that the law’s uncertain future and its implications for free expression warrant the 90-day reprieve.

Background on the Controversy

The contentious legislation was passed by Congress in April and signed into law by Biden. It stems from national security concerns raised by the Justice Department, which has argued that TikTok’s access to vast amounts of user data—including locations and private messages—makes it a significant threat. The department also raised concerns about ByteDance’s potential to manipulate content visible to American users.

TikTok, however, has denied these allegations, maintaining that it does not pose an imminent threat to U.S. security. The company and its parent, ByteDance, argue that the law violates the First Amendment’s protections of free speech.

Political Reactions

The debate over TikTok has divided lawmakers. Senate Republican Leader Mitch McConnell, in a brief filed with the Supreme Court, urged the court to reject any delay in enforcing the law, likening TikTok to a “hardened criminal.” Similarly, other senators, such as Republican Josh Hawley and Democrat Richard Blumenthal, insist that ByteDance must comply with the legislation.

On the other hand, Markey and Paul’s appeal highlights concerns about free expression and the impact of a potential TikTok ban on its 170 million American users.

Trump’s Reversal on TikTok

In a surprising turn, Republican President-elect Donald Trump, who previously sought to ban TikTok during his first term in 2020, has shifted his stance. During this year’s presidential race, Trump expressed a newfound fondness for TikTok, stating that he has “a warm spot” for the app and would “take a look” at the matter if elected. Trump will assume office on January 20, just one day after the current TikTok sale deadline.

Next Steps

With the Supreme Court set to deliberate on the matter and the Biden administration under pressure to extend the deadline, the future of TikTok in the U.S. hangs in the balance. Neither the White House nor TikTok has commented on the senators’ request.