Apple Appeals "Unprecedented" €500 Million EU App Store Fine

Apple Inc. has appealed a €500 million ($580 million) fine from the European Union, calling the penalty “unprecedented” and the regulator’s mandated changes to its App Store “unlawful,” Mark Gurman reported for Reuters.

Apple said EU regulators demanded the new tiered system, which it argues is more confusing for both users and developers.

The European Commission (EC) announced the fine in April under its Digital Markets Act (DMA), saying the iPhone maker violated rules that allow developers to steer users toward purchases outside the App Store.

In June, Apple revised its EU App Store policies to comply with local regulations and avoid further penalties.

“We believe the EC’s decision — and their unprecedented fine — go far beyond what the law requires,” Apple said.

“As our appeal will show, the EC is mandating how we run our store and forcing business terms that are confusing for developers and bad for users.”

As part of its June changes, Apple introduced a tiered commission structure of either 5% or 13%, on top of a 2% user acquisition fee, depending on whether developers want their apps to appear in App Store search suggestions, promotional material, or be eligible for automatic updates.

Apple said EU regulators demanded the new tiered system, which it argues is more confusing for both users and developers. It also claimed that no other app store is subject to a similar structure.

Apple now also allows developers more freedom to promote out-of-app payment processing for digital goods, bypassing some of the company's fees.

Additionally, the company said the EC unlawfully expanded the definition of "steering," allowing developers to direct users to make transactions outside the App Store.