Apple Faces Billions in Losses as EU Comma Interpretation Ends External Purchase Fees

Apple will lose the ability to collect commissions on external iOS purchases in Europe starting June 23, following a European Commission ruling that hinges on the grammatical interpretation of a single comma in the Digital Markets Act. The dispute centers on Article 5.4, which requires gatekeepers to allow business users 'free of charge, to communicate and promote offers, including under different conditions, and to conclude contracts with those end users.'

Apple contends that 'free of charge' applies only to communication and promotion activities, not contract conclusion, allowing the company to maintain its commission structure on external transactions. The European Commission interprets the comma before 'and to conclude contracts' as creating an enumeration where the free-of-charge requirement applies to all listed activities, including purchases made outside Apple's payment system.

Under the new ruling, Apple can collect commissions only on the first external transaction between users and developers, with all subsequent purchases and auto-renewed subscriptions exempt from fees. The company faces daily penalties of up to $53.5 million for non-compliance and has already been fined $570 million. Apple's internal forecasts estimate potential annual losses of 'hundreds of millions or even billions of dollars' in the US alone, though Europe demands stricter changes than those projections assumed.

Read more of this story at Slashdot.