Apple Challenges 'Unprecedented' €500M EU Fine Over App Store Steering Rules

[MacRumors]

Apple is appealing the 500 million euro ($570 million) fine that it is facing in the European Union for allegedly violating the Digital Markets Act.

In a statement to MacRumors, Apple said that the fine is unprecedented, and goes beyond what the law requires.

Today we filed our appeal because 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. We implemented this to avoid punitive daily fines and will share the facts with the Court.

Apple was fined in April for restricting app developers from informing users about purchase options available outside of the App Store. The European Commission said that developers should have the ability to direct customers to outside of the App Store.

"App developers distributing their apps via Apple's App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases," said the EC in its ruling.

Besides fining Apple 500 million euros, the EC also ordered Apple to change its App Store rules around steering or face further fines. Apple made the required changes in late June to prevent being further penalized during the appeals process. Apps that are distributed through EU storefronts can now freely link to deals available outside of the App Store, and can even provide alternate purchase options that don't use Apple's in-app purchase system.

Apple also updated its fee structure in the European Union, and by January 1, 2026, all EU developers will pay a Core Technology Commission, an initial acquisition fee, and a store services fee. Fees will vary based on the level of App Store service that developers opt to use, and Small Business Program participants will pay lower fees. The maximum fee under the new system for App Store app distribution with Apple's full suite of services is 20 percent, 10 percent lower than the prior 30 percent fee.

There is a tiered system for App Store services to lower fees. Developers that want to pay less can choose tier 1, and Apple will not provide automatic app updates, ratings, reviews, search suggestions, App Store features and marketing, and analytics. Tier 2 provides all of the current App Store services. Tier 1 is mandatory, and tier 2 is optional.

Apple says that the European Commission required it to offer different tiers that would let developers pay less for fewer services, which is why there is a new, more complex system. The EC also instructed Apple on which services developers should be able to opt out of, resulting in Apple moving search discovery and browse options out of its mandatory tier.

Apple plans to argue that the EC is telling it how to operate its business, and that the commission has expanded the definition of steering beyond what the law requires.

Article Link: Apple Challenges 'Unprecedented' €500M EU Fine Over App Store Steering Rules

 

[m1mini]

EU has a grudge against Apple. They probably want Apple to cease it's entire EU operations and leave the European Market forever.

 

[cjsuk]

I’m done.

Just let me side load. I paid £1000 for this phone.

 

[beautyहमempty]

Hi Apple, EU here,

Since you make a significant share of your profits because of my market, you won’t cease your operations and won’t go anywhere. 😉

I have +100 million more citizens than the USA and I decide who operates in my market and under what conditions.

 

[Shalev Lazarof]

EU trying to ripoff Apple is a tradition at this point

 

[thekeyring]

I’m done.

Just let me side load. I paid £1000 for this phone.

If customers paid £500 for a Switch 2, should they be allowed to side load onto that?

£1,000 phones exist that allow sideloading.

 

[JanoschR]

Hi Apple, EU here,

Since you make a significant share of your profits because of my market, you won’t cease your operations and won’t go anywhere. 😉

I have +100 million more citizens than the USA and I decide who operates in my market and under what conditions.

Hi EU, Apple here,

You have no idea what you’re doing and just want to show that you stand up against "big tech", making everything worse (and confusing) for developers and offer little benefit to consumers. We will continue to implement the forced changes in the most confusing way possible and may not bring new stuff to your market. This is bad for everyone but let’s see how this goes.

Also: we mainly care about France, Germany and the UK (but hey are no longer part of your gang lol).

 

[opiapr]

I’m done.

Just let me side load. I paid £1000 for this phone.

You chose to purchase it knowing exactly what you were getting. If you don’t like the walled garden, don’t buy into it.

 

[Starfia]

Come on, Apple.

I paid quite a lot for this specialty motorized Jacoby Farnethstonworth tractor plough and I should be able to install whatever third-party software I want on it.

 

[123]

If customers paid £500 for a Switch 2, should they be allowed to side load onto that?

Of course. What a silly question.

 

[123]

knowing exactly what you were getting.

Are you talking about Apple selling in the EU?

 

[jgba]

We will continue to implement the forced changes in the most confusing way possible and may not bring new stuff to your market. This is bad for everyone but let’s see how this goes.

Funny, while trying to defend Apple you've still managed to concede their shockingly petulant nature (as can be seen in every bizarre public statement they've made about this), and how much value they really place on "doing what's right for consumers" as opposed to protecting their ~80% App Store margins or 90%+ Safari (Google search deal) margins.

 

[iPay]

> Today we filed our appeal because we believe the European Commission's decision--and their unprecedented fine--go far beyond what the law requires.
Meaning: far beyond their expected fine if they don't comply.
They act as if they don't get how EU works (of course they do): fines are not bribes or extortion or random tariffs, it's a tool to have their regulations enforced. Saying "ok, I choose the fine" only leads to higher fines until they comply. Also, EU doesn't TACO. People may have strong opinions on regulations and hate EU for that, but it's how it works when you try to sell there.

 

[beautyहमempty]

Hi EU, Apple here,

You have no idea what you’re doing and just want to show that you stand up against "big tech", making everything worse (and confusing) for developers and offer little benefit to consumers. We will continue to implement the forced changes in the most confusing way possible and may not bring new stuff to your market. This is bad for everyone but let’s see how this goes.

Also: we mainly care about France, Germany and the UK (but hey are no longer part of your gang lol).

First of all: You accuse me of confusing developers, yet you openly admit you plan to implement the changes in the most confusing way possible. Interesting self-own. Didn’t think you’d say it out loud. 🤣

If you openly admit you’ll intentionally make things worse and confuse developers, just to cling to your App Store monopoly, you’re basically proving my point. Thanks for showing everyone exactly why regulators exist and why you shouldn’t be trusted to ‘self-regulate’.

Again: If you want to operate in my market, you play by my rules. Not the other way around. And we all know you will, because you always do:

-USB-C on all Apple devices … huge benefit for consumers. We have that thanks to the EU.
-Alternative app stores provide more choice and convenience. (We know, because we use it ) Again, only because of the EU.
-Alternative payment methods are better for consumers and developers alike. Once more, that’s the EU’s doing.

So as you can see: your threat to make things worse on purpose doesn’t make much sense. You’re just showing why these rules matter and why they work.

FYI: I am from Germany and we are best buds with France. The UK is starting to build economic bonds with the EU again… they regret Brexit and want to rejoin…

 

[AppliedMicro]

EU has a grudge against Apple

Considering their willful noncompliance, I’d do too.

EU trying to ripoff Apple is a tradition at this point

Nothing in that fine is a rip-off. Apple can comply or leave the market - simple as that.

 

[Atarikid]

If customers paid £500 for a Switch 2, should they be allowed to side load onto that?

£1,000 phones exist that allow sideloading.

You can already ‘sideloading’ for Switch. Just buy a cartridge.

 

[AppliedMicro]

You have no idea what you’re doing and just want to show that you stand up against "big tech", making everything worse (and confusing)

If anyone’s making anything confusing regarding distribution and installation of software, it’s Apple - not the EU.

 

[JanoschR]

If anyone’s making anything confusing regarding distribution and installation of software, it’s Apple - not the EU.

...by adopting the changes the EU wants, yes.

 

[ECHLN]

The EU mafia is ruthless. Curious to see what comes of this

 

[AppliedMicro]

by adopting the changes the EU wants

There’s a lot of allegations that the EU “instructed” this or demanded that.

I don’t believe it until I see official communication from the EU.
Especially not since Apple earlier claimed having received no feedback - upon which the EU said:

“it is the “sole responsibility” of the gatekeepers to come up with product changes that comply with the law”

 

[Etc_]

People claiming the EU is ripping off Apple should be aware that this fine amounts to only about 1.4% of the maximum possible penalty (10% of global turnover) the EU could have imposed. If the intention were truly to "rip Apple off," the fine would be much higher.

 

[JanoschR]

If you openly admit you’ll intentionally make things worse and confuse developers, just to cling to your App Store monopoly, you’re basically proving my point. Thanks for showing everyone exactly why regulators exist and why you shouldn’t be trusted to ‘self-regulate’.

Again: If you want to operate in my market, you play by my rules. Not the other way around.

And we all know you will, because you always do:

-USB-C on all Apple devices … huge benefit for consumers. We have that thanks to the EU.

-Alternative app stores provide more choice and convenience. (We know, because we use it ) Again, only because of the EU.

-Alternative payment methods are better for consumers and developers alike. Once more, that’s the EU’s doing.

So as you can see: your threat to make things worse on purpose doesn’t make much sense. You’re just showing why these rules matter and why they work.

FYI: I am from Germany and we are best buds with France. The UK is starting to build economic bonds with the EU again… they regret Brexit and want to rejoin…

I'm from Germany too and I really hat this whole thing. The EU has no technical understanding and is so busy hearing the complaints from Spotify and Epic that they don't care about what could actually improve the situation for developers and users. To be crystal clear: these companies only want to distribute their apps and pay nothing. They don't care about what other developers do or want and how that could benefit users. The whole alternative App Store thing is essentially DOA, nobody cares about it. But now the EU wants Apple to offer a way for other companies to do their own AirDrop thing. What the...?!

 

[AppliedMicro]

The EU has no technical understanding and is so busy hearing the complaints from Spotify and Epic that they don't care about what could actually improve the situation for developers and users. To be crystal clear: these companies only want to distribute their apps and pay nothing

They would be more than happy to distribute their apps, pay for it - and take payments - the same way Uber does.

 

[AppliedMicro]

But now the EU wants Apple to offer a way for other companies to do their own AirDrop thing

Which clearly benefits consumers.
Private sharing of files without internet and cloud required.

Why are you so against it?

 

[Fara82Light]

EU trying to ripoff Apple is a tradition at this point

It is a cheap shot to claim that the EU is acting unfairly against Apple, given that the EU is acting in the interests of EU consumers.