Key Points
- Apple is appealing a 500 million euro fine from the European Union.
- The EU fined Apple for breaking its new Digital Markets Act (DMA) rules.
- Regulators say Apple has illegally prevented app developers from informing users about cheaper deals outside the App Store.
- Apple claims the EU’s demands are confusing and detrimental to users, and that it will fight the “unprecedented” fine in court.
- The case is a major test of the EU’s power to regulate Big Tech, with companies like Spotify and Epic Games closely watching.
Apple is officially fighting back against a massive 500 million euro ($586 million) fine from the European Union, calling the penalty “unprecedented.” The company filed an appeal on Monday, escalating its battle with EU regulators over how it runs its App Store.
The fine was issued in April by the European Commission, the EU’s executive body. Regulators accused Apple of breaking the bloc’s new Digital Markets Act (DMA) by unfairly restricting app developers. Specifically, the EU stated that Apple was blocking developers from informing users about cheaper subscription offers available outside the App Store—a practice known as “anti-steering.”
In its statement, Apple argued that the EU is forcing it to accept “business terms which are confusing for developers and bad for users.” The company said it recently changed its App Store policies only to avoid even larger daily fines and that it will now “share the facts with the Court.”
The dispute is a major test of the DMA, a landmark law designed to curb the power of Big Tech. The law requires companies like Apple to allow developers to communicate freely with their customers about alternative payment options.
Companies like Spotify and Epic Games have long complained that Apple’s rules make it nearly impossible for them to compete fairly, as Apple takes a steep 15-30% commission on all in-app purchases. The EU’s fine was a direct response to such complaints.
