Apple Stock Rises as EU App Store Terms Eased

Apple's stock price rose by about 2% on Wednesday as investors viewed changes to its App Store terms for developers in the European Union as a step toward easing regulatory pressure.

The company announced it will replace its previous fee structure with a 5% Core Technology Commission on digital transactions, and remove some other fees tied to alternative app distribution.

These changes could reduce regulatory uncertainty surrounding Apple's business in Europe, where the European Commission has been pushing the company to make its App Store rules more compatible with the Digital Markets Act.

The revised terms will apply a 5% commission on digital transactions for developers using alternative app stores or web distribution in the EU, while different commission rates will be applied to transactions made through Apple's own App Store and other payment methods.

Rothschild & Co Redburn analyst Timm Schulze-Melander recently upgraded Apple to Buy from Neutral and raised its price target to $400 from $260, citing potential from the company's AI strategy and a possible premium foldable iPhone.