Apple has filed a formal appeal against the €500 million fine imposed by the European Commission, arguing that the penalty exceeds the requirements of the Digital Markets Act (DMA). The fine was issued in March after regulators found Apple in violation of anti-steering provisions that govern how platforms can limit developers from directing users to alternative payment options.
Apple says it made extensive changes to its App Store policies in the EU, including allowing third-party app marketplaces and support for alternative browser engines. But the Commission insisted the company’s earlier restrictions on steering, such as limiting how developers can link to external payment options, violated the DMA. Regulators said the fine reflects the “gravity and duration” of Apple’s non-compliance.
In its appeal, Apple accuses the Commission of going beyond the law by prescribing how the App Store must operate. It argues the mandated changes are not only legally excessive but also disruptive to developers and confusing for users. “We implemented this to avoid punitive daily fines and will share the facts with the Court,” Apple said.
Ongoing Disputes Around ‘Steering’ and Fee Structures
The company also claims that the EU continues to shift its expectations under the DMA. Specifically, Apple says the Commission has expanded the definition of “steering” to include in-app promotions, webviews, and links to other marketplaces. Apple had already adjusted its rules in 2023 to allow linking to external payment methods. Now, it says the EU has pushed further, creating compliance challenges.
Last week, Apple introduced a revised Store Services Fee structure to align with EU directives. The changes split the App Store’s fee model into two tiers. Tier One includes a 5% fee for basic services like app distribution and trust features. Tier Two carries a 13% fee reduced to 10% for Small Business Program members and long-term subscriptions and includes discovery tools and additional support.
According to Apple, it was the Commission that decided which features should fall under each tier. The EU required, for example, that app discovery tools be placed in Tier Two, effectively making them part of the higher-cost option. The company published a detailed breakdown of these tiers on its developer website.
By default, EU developers are placed in Tier Two. However, those who promote offers for digital goods or services must move to Tier One, the lower-cost tier with reduced capabilities. Developers can switch tiers once per quarter on a per-app, per-storefront basis.
Apple’s appeal now moves to the European courts, where the outcome will likely influence how the DMA is enforced across other platforms. The case also sets a precedent for how far regulators can go in dictating platform operations under the EU’s new competition regime.
