Apple’s App Store policies continue to be a major battleground for the company with legislative bodies around the globe. Apple has now formally appealed one of its latest fines in Europe connected to its digital marketplace.
In April this year, the European Commission (EC) announced a €500 million (around $580 million) penalty connected to the Digital Markets Act. The EC said Apple had broken its rules by not allowing developers to encourage users to explore alternative payment methods.
Apple is now formally appealing that fine, as reported by Bloomberg. Apple’s statement says, “We believe the European Commission’s decision — and their unprecedented fine — go far beyond what the law requires. As our appeal will show, the EC is mandating how we run our store and forcing business terms which are confusing for developers and bad for users.”
The appeal specifically focuses on how the company believes the EC has been “unlawful” by changing its definition of “steering.” It says the EC has now included elements like promotions of in-app payment options to be under included in its definition of steering. Apple says this wasn’t always the case.
In late June, Apple introduced a new two-tier fee system for developers in Europe. The cheaper tier charges a 5% commission for developers who don’t want access to all of the App Store’s services, and 13% for those who do. Expanded features in that top tier include App Store search suggestions and automatic updates for users. Both of these fees are on top of a 2% user acquisition charge.
As part of the appeal, Apple also claims the EC controlled certain elements of this new scheme. For example, Apple says the EC told it which features should sit in the more expensive tier. The EC has yet to officially comment on the appeal, and it’s unclear what will happen next.
Back in May, a US court found the company had violated its orders from a case connected to Epic Games. The court told Apple to immediately drop all rules on developers that stopped them from offering payment methods outside of the App Store.
It’s thought Apple made over $10 billion in 2024 from its App Store. The company charges a 30% commission to developers on all purchases made within apps in the US. Now, developers are able to offer alternative payment methods, and some have even offered lower prices outside of Apple’s system.
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About James Peckham
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