Apple fights back against $580 million EU penalty, calls it unlawful: Here’s why

Apple has officially appealed against a $580 million fine imposed by the European Commission, stating that the penalty is excessive and mandated changes to its App Store are beyond the scope of law. For the unversed, Apple was fined under the EU’s Digital Markets Act back in April and was accused of preventing developers from directing users to alternative payment options outside the App Store.

Survey

Now, Apple, in response to the decision, has stated that the imposed fine is unprecedented and claimed that the EU is overstepping its regulatory authority by dictating how the company should operate its digital marketplace. “The Commission is forcing business terms that are both confusing for developers and detrimental to the user experience,” Apple said as quoted by Bloomberg.

Add As A Trusted Source For Google.

Add as a preferred source on Google

A few weeks back, Apple has already updated its App Store policies in order to comply with the new EU regulations and avoid further penalties. A new tiered commission structure was implemented in the area as a result of the changes, with fees ranging from 5% to 13% depending on whether developers desire access to automatic updates, App Store promotions, or search engine visibility. There might also be an extra 2% user acquisition charge.

Also read: Google Veo 3 is now available in India: Here’s how you can use it

Apple has also claimed that the commission structure was developed at the EU’s request and that it has no parallel in other app distribution systems. The business also enhanced developers’ ability to advise users about alternate payment methods, giving them more flexibility in steering transactions away from Apple’s ecosystem, which was a key issue in the EU verdict.

Additionally, Apple argues that the Commission’s definition of “steering” went beyond its intended regulatory scope, impacting developers’ ability to direct users towards off-platform transactions.

Recently, a court decision in the US mandated that the developers must be allowed to direct users to the web for payments, threatening Apple’s revenue model. On the other hand, EU also issued multi-billion-dollar penalties against other tech giants, including Alphabet’s Google.

Follow Us

Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile