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Apple Appeals €500 Million EU DMA Fine as Commission Reviews App Store Changes

Apple argues regulators exceeded the Digital Markets Act’s scope by mandating prescriptive store rules that confuse developers and users.

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 lodged its formal appeal at the EU General Court to overturn the April €500 million fine imposed under the Digital Markets Act.
  • The company contends the European Commission unlawfully broadened the DMA’s anti-steering definition to cover in-app promotions, webviews and links to alternative marketplaces.
  • In late June, Apple overhauled its EU App Store policies to allow external payment links, offer alternative in-app payment methods and introduce a tiered commission structure of 5 percent or 13 percent plus a 2 percent user acquisition fee.
  • The European Commission is currently assessing whether those policy changes satisfy its April order and could reinstate daily fines of up to 5 percent of Apple’s global average daily revenue if compliance falls short.
  • This appeal marks the first judicial challenge to a DMA enforcement action, setting a key precedent for how the EU regulates its designated gatekeeper platforms.