Tech giant Apple (AAPL) is reportedly in last-minute talks with the European Commission to avoid a new set of fines under the Digital Markets Act.
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According to a report in the Financial Times, Apple is locked in discussions with European officials over making changes to its App Store to comply with the rules or face escalating fines.
App Store Restrictions
The tech titan was fined €500 million back in April stemming from Apple’s restrictions, which prevented app developers from directing users to cheaper deals outside the App Store.
In addition to the fine Apple was required to make further product changes by this Thursday, June 26. If it fails to comply, the Commission can fine it for every additional day it is in breach of the law.
As such Apple is understood to be looking at making concessions on its “steering” provisions that stop users from accessing offers outside of its Store.
Discussions have also reportedly touched upon Apple’s Core Technology Fee, which requires developers to pay for each annual install after 1 million downloads.
Meta Concerns
The Commission said it had “ample regulatory powers at its disposal if Apple continues to be in breach of its obligations under the DMA.”
Tech rival Meta Platforms (META) was also fined €200 million back in April for its “pay and consent” advertising model.
Under this model, EU users of Facebook and Instagram had a choice between consenting to personal data combination for personalised advertising or paying a monthly subscription for an ad-free service.
The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data.
Meta also faces escalating fines if it does not make changes by June 26.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 16 Buy, 9 Hold and 4 Sell ratings. Its highest price target is $300. AAPL stock’s consensus price target is $226.94 implying an 12.94% upside.
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