Apple is appealing the 500 million euro ($570 million) fine that it is facing in the European Union for allegedly violating the Digital Markets Act.
In a statement to MacRumors, Apple said that the fine is unprecedented, and goes beyond what the law requires.
Today we filed our appeal because we believe the European Commission’s decision–and their unprecedented fine–go far beyond what the law requires. As our appeal will show, the EC is mandating how we run our store and forcing business terms which are confusing for developers and bad for users. We implemented this to avoid punitive daily fines and will share the facts with the Court.
Apple was fined in April for restricting app developers from informing users about purchase options available outside of the App Store. The European Commission said that developers should have the ability to direct customers to outside of the ?App Store?.
“App developers distributing their apps via Apple’s ?App Store? should be able to inform customers, free of charge, of alternative offers outside the ?App Store?, steer them to those offers and allow them to make purchases,” said the EC in its ruling.
Besides fining Apple 500 million euros, the EC also ordered Apple to change its ?App Store? rules around steering or face further fines. Apple made the required changes in late June to prevent being further penalized during the appeals process. Apps that are distributed through EU storefronts can now freely link to deals available outside of the ?App Store?, and can even provide alternate purchase options that don’t use Apple’s in-app purchase system.
Apple also updated its fee structure in the European Union, and by January 1, 2026, all EU developers will pay a Core Technology Commission, an initial acquisition fee, and a store services fee. Fees will vary based on the level of ?App Store? service that developers opt to use, and Small Business Program participants will pay lower fees. The maximum fee under the new system for ?App Store? app distribution with Apple’s full suite of services is 20 percent, 10 percent lower than the prior 30 percent fee.
There is a tiered system for ?App Store? services to lower fees. Developers that want to pay less can choose tier 1, and Apple will not provide automatic app updates, ratings, reviews, search suggestions, ?App Store? features and marketing, and analytics. Tier 2 provides all of the current ?App Store? services. Tier 1 is mandatory, and tier 2 is optional.
Apple says that the European Commission required it to offer different tiers that would let developers pay less for fewer services, which is why there is a new, more complex system. The EC also instructed Apple on which services developers should be able to opt out of, resulting in Apple moving search discovery and browse options out of its mandatory tier.
Apple plans to argue that the EC is telling it how to operate its business, and that the commission has expanded the definition of steering beyond what the law requires.Tags: App Store, European Commission, European UnionThis article, “Apple Challenges ‘Unprecedented’ €500M EU Fine Over App Store Steering Rules” first appeared on MacRumors.comDiscuss this article in our forums
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Author: Juli Clover