### Apple Challenges €500 Million Penalty from European Commission
As expected, Apple has officially contested the €500 million penalty levied by the European Commission for purported breaches of the Digital Markets Act (DMA). This penalty signifies a pivotal point in the continuous examination of large tech corporations by European authorities.
#### Context of the Penalty
In April 2025, the European Union imposed its inaugural fines under the DMA, targeting both Apple and Meta. The Commission pointed to Apple’s anti-steering practices within the App Store as the justification for the penalty, highlighting that the figure was established based on the seriousness and length of Apple’s non-compliance with the regulations.
In March 2024, Apple announced considerable amendments to its App Store policies in the EU, which encompassed the introduction of alternative app marketplaces, updated business agreements for developers, and support for third-party browser engines. These modifications were part of Apple’s approach to align with the new regulatory landscape established by the EU.
#### Latest Adjustments to App Store Policies
In light of the penalty and persistent regulatory pressure, Apple made additional alterations to its App Store regulations in the EU. These alterations specifically focused on the anti-steering policies that formerly limited developers from guiding users to alternative payment options. Apple unveiled new business agreements designed to streamline these transactions, aiming to adhere to the DMA while circumventing further fines.
Apple’s communication to 9to5Mac indicated concerns that the European Commission’s requirements could negatively impact both developers and users, asserting that the Commission’s directives regarding App Store operations were excessive. The company underscored that these changes were implemented to avoid incurring daily fines from the Commission.
#### The Appeal Argument
In its appeal, Apple asserts that the European Commission’s ruling and the associated penalty surpass legal norms. The company contends that the Commission’s shifting definitions of steering have complicated adherence. For example, Apple had previously modified its guidelines to permit EU developers to link to external payment options. Nonetheless, the Commission’s redefinition now encompasses promotions for in-app alternative payment solutions and links to third-party app marketplaces.
Apple also criticized the EU’s imposed structure concerning the Store Services Fee, which comprises several tiers. Initially established at 10% for developers under the EU’s alternative business terms, this fee structure has been modified to include two distinct tiers:
– **Tier One: 5% Fee**
– Limited access to a designated set of essential App Store services, including app distribution and delivery, along with trust and safety measures.
– **Tier Two: 13% Fee (reduced to 10% for members of the Small Business Program and long-standing subscriptions)**
– Full access to all services currently offered by the App Store.
Apple contends that the EU dictated the characteristics included in each tier, such as transferring app discovery features to the second tier.
#### Summary
Apple’s challenge against the €500 million penalty underscores the ongoing frictions between prominent tech firms and regulatory entities in the EU. As developments unfold, the ramifications for developers, users, and the wider tech environment are yet to be determined. The result of this appeal could establish crucial precedents for the operation of digital marketplaces under the DMA and similar regulations globally.
