The EU’s rules say developers using the App Store and similar marketplaces must inform their customers of less expensive payment options, and enable steering to those options free of charge. The EU accuses Apple of violating these rules by not allowing developers to provide pricing information, among other alleged violations. 

Apple was given until March 25, 2025 — which is one year after the original investigation was announced — to respond to the EU’s most recent assessment, which was issued June 24. If the EU finds Apple is in violation of Europe’s Digital Markets Act, it could be fined 10% of its global revenue for 2023, which would be more than $38 billion. The commission this week also opened a new compliance investigation into Apple’s updated contract terms, contending Apple has retained older terms that do not allow alternative payment channels. 

Apple said this week that it would not provide some of its new artificial intelligence-powered products in the EU due to the tougher regulations. Apple did not provide comment to American Banker by deadline. It told CNBC it would work with the EU to find a “solution” that would enable it to offer the new AI services in Europe. Apple also told The Verge and other media outlets that it has made several changes to follow EU payment processing regulations, including giving developers the opportunity to direct app users to the web to complete payments at a competitive rate. 

The EU has been investigating Apple for potential anti-competition rules violations for at least four years. In 2022, the Commission accused Apple of limiting access to the near-field communication technology that enables contactless payments, thus giving an unfair advantage to Apple Pay. 

And Apple and Google have faced lawsuits and regulatory pressure in different countries due to the fees the two firms charge for payments made through their respective app stores. These fees can be as high as 30%, though both companies have lowered these fees for smaller companies and in a few countries. 

In earlier American Banker interviews, payment experts have said the accumulated pressure on big technology firms from suits, regulatory enforcement and new laws will create opportunities for bank-led payment systems, such as the Early Warning-powered Paze Wallet. Technology companies that offer payment facilitation — or routing — could have an opportunity to enroll new consumers if Google and Apple’s control over mobile payment app checkout is loosened. 

These analysts also caution that Apple and Google’s security products and user experience will continue to provide an advantage for the large technology firms. — John Adams