The European Union has issued a stern warning to Apple, cautioning the tech giant of strict repercussions if its proposed modifications to the App Store fail to meet forthcoming regulations. The EU's industry chief delivered the warning on Friday.

Apple's adjustments come in response to the impending Digital Markets Act (DMA) set forth by the EU. The company has declared that it will allow developers to offer their apps through alternative app stores on Apple devices. Starting March, developers can choose to use other app stores and opt out of Apple's in-app payment system, which currently charges commissions as high as 30%.

Critics, however, argue that Apple's fee structure remains unfair and may violate the DMA. In response to inquiries regarding Apple's plans, EU industry chief Thierry Breton told Reuters, "The DMA aims to ensure fair and open digital markets by fostering competition. We're already witnessing changes. Starting March 7, we will evaluate companies' proposals, considering input from third parties." Breton stressed that if the proposed solutions are inadequate, the EU will take strong action.

Despite the changes, developers will still need to submit their apps to Apple for review to address cybersecurity risks and potential fraud. Additionally, EU users of Apple devices will have the option to choose default web browsers and contactless payment apps, allowing them to make payments without relying solely on Apple Pay.

Even with the option for developers to bypass Apple's App Store and payment system, there will be a mandatory "core technology fee" of 50 euro cents per user account per year. Apple clarified that this fee only applies to developers who agree to the new terms.

According to Apple's estimates, under the new terms, 99% of EU developers will either decrease or maintain the fees they owe to the company. However, larger companies like Meta and Spotify, with millions of free users, are expected to be more significantly impacted.

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