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David Zimmermann


NextImg:Apple appeals ‘unprecedented’ fine under EU tech regulation

Apple on Monday filed an appeal challenging the European Union’s “unprecedented” $586 million fine that targets the U.S. tech company for allegedly violating the bloc’s Digital Markets Act.

“Today we filed our appeal because we believe the European Commission’s decision—and their unprecedented fine—go far beyond what the law requires,” Apple said in a statement shared with the Washington Examiner. “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.”

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In April, the European Commission fined Apple 500 million euros after finding the company engaged in anticompetitive behavior by preventing app developers from steering users to cheaper deals outside the Apple App Store.

“Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store,” the commission wrote at the time. “Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers.”

The Digital Markets Act is an EU regulation that classifies six large tech companies, including Apple, as “gatekeepers” and mandates they make certain changes to make the digital marketplace “fairer” and “more contestable.”

Apple maintains that it is complying with the Digital Markets Act after changing the App Store’s European policies last month. Despite its reluctant compliance, the company still plans to contest the regulation.

Apple argued in its appeal that the European Commission forced it to tier its services offerings, meaning developers can opt out of services for lower fees. Apple says it doesn’t know any other app store that uses the tiered model.

The commission also allegedly unlawfully expanded the definition of steering, a practice that guides users toward alternative offers outside the App Store. The definition was expanded to include linking to an external website, promotions of an offer in an app, and linking to competing app marketplaces and other third-party apps, Apple says.

The European Commission said it would defend its regulation in court.

The move comes as EU and U.S. officials work to negotiate a trade deal by Wednesday. The deal will likely see the EU make a concession regarding its Digital Markets Act to avoid U.S. tariffs, which the Trump administration says will take effect on Aug. 1.

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President Donald Trump and his administration have accused the EU of unfairly targeting U.S. companies with hefty fines that effectively serve as taxes. According to a top European Commission official, the EU doesn’t intend to concede on its tech rules.

“The [Digital Services Act], the [Digital Markets Act], and the [Artificial Intelligence] Act, of course, these are very important rules for us to make sure that we have trustworthy technologies,” European Commission tech chief Henna Virkkunen told Politico last week. “So, this is not part of trade negotiations from our side.”