Regulatory - Digital Markets Act - Apple Proposes New Terms for Apple Store

Apple’s longstanding control over in-app payments and its prevention of developers steering users to cheaper external options is not allowed in the EU. In April, the European Commission gave the company 60 days to comply with the requirements.

The new terms on external linking, user warning, and fee structures (including the Initial Acquisition fee, the Store Service fee, and the Core Tech fee) have been met with a mix of skepticism and cautious optimism. Many developers, especially larger ones, argue that the new fees could make it just as expensive-or even more so—to distribute apps outside the Apple ecosystem, undermining the intent of the DMA to promote competition. Small businesses and developers who qualify for exemptions (e.g., from the Initial Acquisition Fee or reduced Store Services Fee) may find the new terms more favorable, as they gain more flexibility without significant additional costs.

The European Commission has indicated that it is closely monitoring Apple’s implementation of the DMA. There are concerns that Apple’s new terms may not fully align with the DMA’s objectives, and further regulatory action could be taken if compliance is deemed insufficient.

Regarding the U.S. Apple Store terms, following legal rulings and policy changes, Apple maintains strict guidelines on external linking and specific language requirements that developers must use, as well as a distinct fee structure.

Regulatory - Digital Markets Act - Apple Store - Infringement Decision

The European Commission (EC) found that Apple’s App Store business terms do not comply with Article 5(4) of the Digital Market Act (DMA). Apple must allow app developers to steer users and conclude contracts with them, free of charge, using any distribution channel, and must remove contractual and technical barriers that prevent this. The EC’s decision imposes a cease and desist order and sets the framework for fines and further enforcement if Apple fails to comply.

Enforcement Actions

• Cease and Desist Order: Apple is ordered to stop its non-compliant practices and to explain how it will achieve compliance.

 • Fines: approximately 0.14% of Apple's annual worldwide turnover. The decision outlines the methodology for calculating fines, considering the gravity and duration of non-compliance, and Apple’s intent or negligence.

• Periodic Penalty Payments: The EC reserves the right to impose ongoing penalties if Apple does not bring its practices into compliance.

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The European Commission has imposed fines totaling approximately €458 million for a cartel between 15 major car manufacturers and the European Automobile Manufacturers’ Association (ACEA). Mercedes-Benz received full immunity for revealing the cartel and avoided fine of around €35 million. ACEA played a central role in facilitating the cartel by organizing numerous meetings and communications among the participating manufacturers.

Patent Data and Insight - AI - European Patent Office - Patent Index 2024

Computer technology, encompassing areas like artificial intelligence (AI), machine learning, and pattern recognition, emerged as the leading field, with 16,815 patent applications filed in 2024. The United States remained the leading country of origin for European patent applications, followed by Germany, Japan, the People's Republic of China, and the Republic of Korea.