Apple Inc Appeals $580 Million Fine Imposed by European Commission

Apple Inc has formally appealed a €500 million ($580 million) fine imposed by the European Commission, arguing that the penalty is unprecedented and detrimental to developers and consumers. The fine, issued in April under the bloc's new Digital Markets Act (DMA), accused the iPhone maker of preventing app developers from guiding users to alternative payment options outside of the App Store ecosystem. Apple revised its EU App Store policies in June, introducing a new tiered commission structure. Under the updated model, developers can choose between a five per cent or 13 per cent commission rate, in addition to a two per cent user acquisition fee. Apple claims the revised commission model was created to comply with the European Commission's requirements but insists it introduces complexity that disadvantages developers and consumers. The company argues that no other app distribution platform is subject to such a structure. Apple has also loosened restrictions that previously limited how developers could promote payment alternatives, allowing developers in the EU to direct users more freely to external websites to complete digital purchases, thereby avoiding some of Apple's transaction fees. The dispute adds to a growing list of legal and regulatory challenges Apple faces globally over its App Store rules. In the United States, a federal judge recently ruled that Apple must allow American developers to guide users towards third-party payment options, a decision that could have significant financial implications for the company's services revenue.