Apple is in open conflict with European regulators, filing an appeal against a €500 million (about $570 million) fine imposed on it for violating the Digital Markets Act (DMA) . The European Commission 's decision , which punished Apple for restrictions on the App Store , is described by the company as "unprecedented and legally unfounded."
“Today we filed our appeal because we believe that the European Commission’s decision – and its unprecedented fine – goes far beyond what the law requires. As our appeal will demonstrate, the European Commission is interfering with how we operate our store and imposing business terms that are confusing to developers and harmful to users. We did this to avoid punitive daily fines and will share the facts with the Court.”.
The focus of the controversy: The App Store and market control
The case revolves around Apple's policy of preventing developers from promoting alternative purchase options within their apps. Until recently, apps on iOS could not tell users that a cheaper or alternative purchase option was available — outside of the App Store.
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According to the European Commission, this undermines competition and hinders the freedom of information for users. The new DMA rules require that developers be given the opportunity to:
- Inform users about external offers
- Direct users to alternative shopping platforms
- Allow purchases outside of Apple's payment ecosystem
The Commission accompanied the €500 million fine with a demand to change the App Store regulations, threatening Apple with additional daily fines in case of non-compliance.
Changes under pressure: New pricing models and options for developers
Fearing further sanctions, Apple made significant changes to the App Store for the EU market in late June. Apps distributed through the European version of the App Store can now:
- Incorporate links to external offers
- Use alternative payment systemsother than Apple
At the same time, a new fee system. Starting January 1, 2026, all developers in the EU will pay a Core Technology Commission, an initial acquisition fee, and a store services. The fees will vary depending on the level of App Store service that developers choose to use, and participants in the Small Business Program will pay lower fees. The maximum fee under the new system for distributing App Store apps (with Apple's full suite of services) is 20%, 10% lower than the previous fee.
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Additionally, developers using the External Purchase Link Entitlement and those using the Alternative Terms Addendum will pay a reduced store services fee under a new two-tier services system created by Apple.
In Tier 1, which offers a reduced 5% commission on in-app purchases, developers will only have access to basic features, such as app reviews, privacy labels, and Apple support. However, important tools like automatic updates or automatic app downloads will remain outside of this tier, limiting the ability to promote apps.
For full access to all App Store features, developers should choose Tier 2, which comes with a higher commission.
Tension and precedents: What's at stake?
Apple's objection is not just about the €500 million, but the broader relationship between tech giants and the EU. Apple is expected to argue in the Court that the European Commission is exceeding its powersby interfering with the company's business model and autonomy.
The outcome of the case may have decisive consequences for the future of App Stores in Europe, but also for the implementation of the DMA, a law that aims to limit the power of “gatekeepers” such as Apple, Google and Meta.
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What does this mean for users and developers?
- Users in the EU gain access to cheaper or alternative app markets
- Developers now have more freedom in how they promote their services
- Apple, however, continues to control a significant part of the ecosystem through the new fee system.
At the same time, the European Commission is moving more dynamically than ever in the field of regulating the digital economy. The fine and the pressures it is exerting show that this is not just a “nominal” application of the rules, but a more substantial effort to change the landscape of digital markets.
Source: www.macrumors.com
