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yesterday

Apple Appeals €500 Million EU Digital Markets Act Fine

Arguing that Brussels overstepped its authority in prescribing App Store business terms, Apple has appealed to the EU’s General Court to overturn the unprecedented penalty.

An Apple logo is seen at the entrance of an Apple Store in downtown Brussels, Belgium March 10, 2016. REUTERS/Yves Herman/ File Photo
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Overview

  • On July 7, Apple filed a formal appeal at the EU General Court against the €500 million fine imposed in April for breaching anti-steering provisions under the Digital Markets Act.
  • The company contends the European Commission expanded the DMA’s definition of steering beyond its legal remit by dictating how developers link to external payment options and marketplaces.
  • In late June, Apple revamped its EU App Store rules to allow external links and introduced a two-tier Store Services Fee of 5% and 13% (10% for Small Business Program members) to preempt daily penalties.
  • Under the DMA, failure to comply with the Commission’s order risks daily fines of up to 5% of Apple’s average global daily revenue—approximately €50 million per day.
  • The European Commission is currently reviewing Apple’s June policy changes to decide whether they satisfy the DMA requirements or trigger further enforcement measures.