Apple Tries Get €500M EU Fine Tossed

Apple is on the hook for a €500 million (US $587 million) anti-steering fine in the EU, so it's reportedly doing what any profit-driven enterprise in such a position would do: Appealing.

The iMaker has been on Brussels' radar since the Digital Markets Act (DMA) was just a twinkle in the eyes of legislators. The DMA includes anti-steering provisions, which are meant to prohibit companies from directing users to products or services that help them while foreclosing competition. In the case of Apple, European lawmakers contend Apple broke those rules by preventing developers from guiding users to non-Apple app stores for purchases they wanted to make inside apps, such as game add-ons or subscriptions.

In 2024, Apple announced a number of changes to its systems to help it comply with the DMA, including web distribution of apps and support for approved alternative app stores, but those and other moves didn't appease the Commission. 

In April, Apple became the subject of one of the first fines levied since the Act was adopted in 2022, earning a €500 million penalty for violating those anti-steering rules.

Apple is now appealing to the the EU's General Court to get the fine tossed, according to reports. 

Apple didn't immediately respond to questions from The Register for this story. The European Commission didn't have a specific comment for us either, but a spokesperson did tell us that the Commission "will defend our position in court." 

Zero means zero

One of the most questionable elements of Apple's plan was a new fee structure meant to make up some of its revenue lost from complying with the no-steering rules, including a €0.50 per-install fee that large developers must pay once any commercial app passes 1 million installations in the EU. (It doesn't apply to everybody - small developers and apps that don't generate revenue are exempt, for instance.)

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In its latest round of appeasement attempts, Apple said it plans to phase out this fee and replace it with other levies, including a 5% commission on sales of digital products communicated and promoted through apps available in the App Store.

No matter what Apple calls it, it's unlikely charging for steered transactions is going to fly. As we noted in a story in late May about Apple's looming DMA compliance deadline, the Commission had already decided last year that charging fees to allow steering violated the DMA. 

"The price for app developers to pay for steering and steered transactions is zero," the Commission said in a June 2024 decision. "Apple simply needs to abstain from imposing a fee for steering and steered transactions."

It'll be up to Apple to prove in court how continuing to charge fees for steered transactions is defensible when weighed against the clear language of the DMA on that exact topic. ®