Epic CEO Tim Sweeney cries “total capitulation” as report claims EU likely to greenlight App Store changes

Apple’s new App Store rules and fees will likely be approved by the European Commission, according to a report.

Reuters cited people with direct knowledge of the matter, who said the regulator’s greenlight was expected in the coming weeks.

Approval for the iPhone giant’s new terms means it would avoid further fines and mark a significant win for the firm as it fights to maintain its revenue share.

In contrast, the App Store has been cracked open in the US following a judge order in the Epic Games vs. Apple case, who was critical of Apple’s anticompetitive dealings. Apple has appealed.

New terms

The company was previously fined €500 million ($587m) for breaching the Digital Markets Act over its anti-steering rules, following an investigation into its business practices. At the time in April, it was reported the fine was lower than expected to avoid the ire of the US Trump administration.

Apple responded last month just before the deadline to comply with a string of new business terms. Publishers are able to link out to off store payments, but are now charged an initial acquisition fee, a store services fee and the Core Technology Commission, under the new rules.

Fees include a 2% initial acquisition fee when a customer purchases a digital good from an app. Meanwhile, the store services fee charges 5% or 13%, with the lower tier one option restricting basic App Store features such as automatic app updates, ratings and reviews, and App Store featuring and marketing. The Core Technology Commission charges a 5% fee.

As well as changing its rules once again in the EU, Apple also vowed to appeal its fine.

“Total capitulation”

Epic Games CEO Tim Sweeney, who has been fighting against Apple’s App Store rules and fees, said the Reuters report was “probably fake news planted by lobbyists”. He provided no evidence for the claim.

“If true, it would mean total capitulation of the European Commission to Apple's brazen junk fees and discrimination against competing payment services makes a mockery of competition,” said Sweeney.

“In particular, it would let Apple get away with practices that the US court already found illegal, and the Digital Markets Act itself says are unlawful, such as imposing fees on steering, and interfering with developer speech to users about competing payment offers.”