Apple Says EC Is Using 'Political Delay Tactics' on App Changes to Impose Fines

Apple was forced to allow the marketplaces to exist on its products in the EU after the Digital Markets Act largely took effect more than 2 years ago.

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Read Time: 3 mins

Apple Inc. accused the European Commission of using "political delay tactics" to postpone new app policies as a pretense to investigate and fine the iPhone maker.
The company responded preemptively to reports the commission is preparing to cite Apple as the reason behind the recent shutdown of Setapp, a third-party app marketplace that is closing next month. The developer, known as MacPaw, cited "still-evolving and complex business terms that don't fit Setapp's current business model" for the decision.

Third-party app marketplaces are alternatives to Apple's App Store, which is built into the company's devices. Apple was forced to allow the marketplaces to exist on its products in the EU after the Digital Markets Act largely took effect more than two years ago. Currently, Apple takes various fees to generate revenue from third-party stores as well as the apps and digital goods featured within them.

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The main fee that third-party stores on iOS need to pay is a €50 cents per installation over 1 million installs of the store. Apps downloaded from those stores - versus Apple's App Store - are charged the same fee. Apple had said last year it planned to change the pricing structure to a 5% revenue share instead, which is considered more economical than the standard fee for developers.

In response to the Setapp shutdown, the commission is preparing to say that "Apple has not rolled out changes to address the key issues concerning its business terms, including their complexity," according to remarks seen by Bloomberg. But Apple claims the shift to the new pricing structure hasn't been implemented because of the commission itself.

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"The European Commission has refused to let us implement the very changes that they requested," the company said in a statement. "In October, we submitted a formal compliance plan and they have yet to respond. The EC is using political delay tactics to mislead the public, move the goal posts, and unfairly target an American company with burdensome investigations and onerous fines."

The company also said there is no demand in the EU for alternative App Stores and disputed that Setapp is shutting because of its actions. Apple has been accused of making app distribution outside of its App Store difficult for developers and consumers in the EU, stoking investigations and multimillion-dollar fines. The company has financial incentive to do so, with the App Store itself being far more lucrative than outside distribution and payment methods.

Still, other prominent third-party stores exist for Apple devices in the EU. That includes an Epic Games store from the developer behind hit title Fortnite and the AltStore.

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