Apple has officially appealed the European Union’s €500 million (about $580 million USD or $800 million CAD) fine over alleged violations of the Digital Markets Act (DMA), calling the penalty “unprecedented” and accusing regulators of forcing unfair and confusing business terms — reports Bloomberg.
The European Commission first announced the fine in April, alleging that Apple’s App Store policies failed to comply with the DMA’s anti-steering provisions and had illegally restricted developers from directing users to alternative payment methods outside the App Store. In response, Apple updated its App Store rules for the EU in June to comply with local regulations and avoid further penalties.
“We believe the European Commission’s decision — and their unprecedented fine — go far beyond what the law requires,” Apple said in a statement on Monday. “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.”
As part of the June changes, Apple introduced a new tiered commission system in the EU App Store. Under this structure, developers can choose between a 5% or 13% commission, depending on whether their app appears in App Store search suggestions, promotional placements, or receives automatic updates. A separate 2% user acquisition fee also applies.
This tiered approach was demanded by EU regulators, per Apple. However, the company criticized it as more confusing for both developers and customers, pointing out that no other app store uses such a model.
Additionally, Apple has now enabled external links in apps, allowing developers in the EU to more openly direct users to external payment methods for digital purchases. That said, the company argued that the Commission unlawfully broadened the definition of “steering” to cover more scenarios than intended.
Apple’s App Store policies have faced growing scrutiny worldwide. In the U.S., a federal court recently ruled that Apple must allow developers to guide users to external websites for in-app purchases, potentially costing the company billions a year in revenue.
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