Apple Appeals €500M EU Fine, Challenges DMA Obligations
Apple Inc. has appealed a €500 million ($580 million) fine from the European Union, contesting the European Commission's obligations regarding interoperability and classification under the Digital Markets Act (DMA) before the General Court of the European Union (EuG). The tech giant is also challenging the Commission's interpretation of 'steering'.
Earlier this year, a California judge ruled that Apple must allow US developers to freely point users to the web for in-app purchases, bypassing Apple's payment processing fees. In response, Apple introduced a tiered commission structure of either 5% or 13% for developers in the E.U. in an attempt to comply with local regulations.
Apple argues that the Commission unlawfully expanded the definition of 'steering' in its DMA obligations. The company maintains that the fine and required changes to its App Store are 'unprecedented' and 'unlawful'.
In June, Apple changed its E.U. App Store policies to meet local requirements and avoid additional penalties. The company now allows developers to promote out-of-app payment processing for digital goods, skirting some of its fees. This move comes after the E.U. previously fined Google over $8 billion and ordered Apple to pay Ireland back taxes of €13 billion.
Apple's appeal against the €500 million fine and DMA obligations is ongoing. The company's changes to its E.U. App Store policies aim to comply with local regulations while challenging the Commission's interpretation of 'steering'. The outcome of this case will have significant implications for Apple's App Store practices and the broader tech industry.
