Apple Fined €500M for App Store Breaches, Calls EU Ruling Unlawful
Apple Inc. faces a €500 million fine from the European Commission for breaching EU digital market rules. The penalty, under the Digital Markets Act, targets Apple's App Store policies, specifically its blocking of alternative payment methods and external links.
Earlier this year, a California judge ruled that Apple must allow US developers to direct users to external websites for in-app purchases. In response, Apple changed its EU App Store policies in June to avoid further penalties. However, the European Commission deemed these changes insufficient and imposed the record-breaking fine.
Apple argues that the Commission unlawfully expanded the definition of 'steering', allowing developers to point users to make transactions elsewhere in more cases. The tech giant labelled the fine 'unprecedented' and the required changes to its App Store 'unlawful'.
The new App Store policies introduced a tiered commission structure of either 5% or 13%, depending on app visibility and updates. Apple now allows developers to more freely promote out-of-app payment processing for digital goods, skirting some of its fees.
The €500 million fine is the latest in a series of costly penalties imposed by the EU on major tech firms. Apple Inc. has appealed the decision, maintaining that its App Store policies comply with EU regulations. The Commission, having previously targeted Apple multiple times, continues to enforce digital market rules.
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