Apple is appealing the €500m (£429m) fine it received from the European Union in April over the restrictions it places on app developers wishing to use alternative purchase methods, insisting the punitive measure is “far beyond what the law requires”.
The European Union hit Apple with the fine after accusing the company of violating its Digital Markets Act (DMA), a piece of legislation intended to ensure major tech platforms behave fairly and in a way that doesn’t stifle competition. Specifically, the EU had taken issue with Apple’s “anti-steering” practices, which restrict iOS app developers’ ability to link to alternative purchase methods away from its own App Store, where it takes a 30 percent cut.
At the time the fine was announced, the European Commission (the EU’s executive branch) said the restrictions Apple imposed on app developers meant they weren’t able to “fully benefit from the advantages of alternative distribution channels outside the App Store”, while customers were similarly unable to “benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers”. Apple was then given 60 days to “remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future”, or it would face further fines.
Apple responded by claiming it was being “unfairly targeting” by the EU, and that the measures it was being asked to implement were “bad for the privacy and security of our users, bad for products, and force us to give away our technology for free.” It also promised to appeal the fine.
And that appeal is now underway. As reported by The Guardian, Apple called the €500m fine “unprecedented” in a statement announcing its appeal to the EU’s general court today, insisting it goes “far beyond what the law requires.” The company added its appeal will demonstrate the European Commission is “mandating how we run our store and forcing business terms which are confusing for developers and bad for users.” Apple reportedly also accused the commission of unlawfully expanding the definition of steering to include the ability for developers to promote offers inside an app, in addition to being able to link to an external website.
Apple (which also recieved a €2bn EU fine in March for its “abusive” App Store rules) overhauled its App Store guidelines last month in a bid to curtail further action by the EU, introducing two new commission tiers for in-app purchases. At Tier 1, Apple will take a five percent commission, while only providing basic App Store features to developers, including app reviews and privacy labels. The likes of automatic app updates and automatic app downloads are not included. Tier 2, meanwhile, is the default tier and offers access to all App Store services for a 13 percent commission on in-app purchases.
Additionally, from 1st January next year, Apple is introducing a new Core Technology Commission of five percent on all digital goods and services sold on the App Store and alternative marketplaces. This replaces the company’s earlier, controversial Core Technology Fee, which the EU also criticised in March, saying it “disinsentivised” App Store developers from using alternative app distribution channels and “failed to comply” with Apple’s obligations.
Earlier this month, European Commission tech boss Henna Virkkunen said the EU wasn’t prepared to negotiate on the rules outlined in its Digital Markets Act, Digital Services Act, and AI Act, despite pushback from the Trump administration and US tech companies.