Apple is pushing back against new app store rules imposed by the European Commission (EC), claiming the EU body has taken changes and a €500 million (£430m) fine too far.
The EC levied the fine in April, arguing Apple was in breach of anti-steering obligations in the EU Digital Markets Act (DMA). That refers to Apple's long-running ban on alternative app stores and rules that stop developers from telling users about discounts or other offers outside of the Apple platform.
Apple previously took a cut of up to 30% on sales inside apps and has been locked in a war of words over the practice with developers.
The tech giant complied with the app store rule changes last month in order to avoid additional fines that could reach 5% of its average revenue globally.
That included a wider range of commission rates up to 13%, alongside user acquisition fees, with the costs dependent on what marketing support the developer wants in the App Store as well as technical aspects such as automatic updates.
Developers will also be able to promote alternative ways of purchasing services outside the app, though Apple would charge a commission on sales advertised via apps in its App Store.
Apple is baffled, the EC is standing firm
Key to Apple’s argument, and appeal, is that the company claims this new system is "confusing" to business users.
"Today we filed our appeal because we believe the European Commission’s decision – and their unprecedented fine – go far beyond what the law requires," said Apple in a statement.
"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."
Apple has yet to reply to a request for comment from ITPro.
The Commission, meanwhile, is standing by its decision. In a statement responding to the appeal, it said: "We stand ready to defend our decisions in court.”
The EC previously said that Apple shouldn't charge developers for the right to "steer" customers, suggesting that a commission on sales promoted in-app wouldn't meet requirements.
Political battle
A legal expert told The Guardian that Apple may be employing delay tactics.
"The blunt truth is that it is worth spending a few million on legal fees in order to disrupt and delay the development of a more open app ecosystem, which is a market that is worth many billions a year to Apple," Tom Smith, a competition lawyer at Geradin Partners, told the publication.
The app store quarrel isn't the only ongoing battle between the EU and tech companies. In April, Meta was hit with a €200m fine for charging users to get rid of ads, while last year Apple was fined €1.8bn over music streaming competition.
The appeal comes ahead of US President Donald Trump's 9 July deadline to settle a trade deal with the EU or risk 50% tariffs. The Trump administration has repeatedly said the EU is targeting US tech companies in retaliation for trade disruption and other political concerns, with Trump trade advisor Peter Navarro calling it "lawfare".
EU action against tech giants stretches back well before even the first Trump administration, with a €497 million fine against Microsoft in 2004 over Windows Media Player bundling that was later increased to €899 million for non-compliance.
That was followed by cases against Intel in 2009, an investigation against Google on search that began in 2010, and investigations into taxes that pulled in Apple and Amazon beginning in 2014.
That said, things have accelerated since 2017 with a €2.42bn fine against Google over price comparison shopping services. In subsequent years, EU lawmakers imposed a €4.34bn for Android and €1.49bn over AdSense, with other cases targeting Apple, Amazon and Meta in recent years.
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