Apple has formally appealed the European Union’s “unprecedented” €500 million ($580 million) fine, imposed in April 2025 for allegedly violating the bloc’s Digital Markets Act (DMA) with its App Store steering policies. The penalty, one of the largest ever levied against a tech company in Europe, marks a pivotal moment in the ongoing clash between regulators and digital platform giants over competition, developer rights, and consumer choice.
Apple’s previous policies limited such steering, often requiring developers to use Apple’s in-app purchase system and discouraging external links through warning screens and restrictive terms. The Commission argued these practices stifled competition and limited consumer choice, leading to the record fine.
Apple has called the fine “unprecedented” and claims the Commission’s mandated changes are both “unlawful” and harmful to developers and users. In its appeal, Apple argues that the EU is overreaching by dictating how it runs the App Store and imposing business terms that are confusing and detrimental to the ecosystem.
To stave off additional daily fines of up to €50 million, Apple has introduced a sweeping overhaul of its EU App Store policies. Developers can now freely link to external payment options without restrictive screens or language, but these new freedoms come with a multi-layered commission system:
Core Technology Commission: A 5% fee on all digital purchases made outside the App Store.
Acquisition Fee: An initial 2% charge per user acquisition.
Store Services Fees: Ranging from 5% to 13% depending on the level of App Store services provided.
Two-Tier Service Structure: Tier 1 (basic features) at 5% commission; Tier 2 (full App Store benefits) at 13%.
This system, while technically compliant, is seen by critics as so complex it may discourage developers from using external payment methods—effectively preserving Apple’s business advantage despite regulatory pressure.
The outcome of the appeal will set a precedent for how far regulators can go in shaping digital platform business models. The €500 million fine is just 0.5% of Apple’s annual net profit, but ongoing non-compliance could trigger even steeper penalties. While they now have more freedom to direct users to alternative payment systems, the new fee structure introduces operational complexity and hidden costs, potentially limiting the practical benefits of the DMA’s intent.
The case is a test of the Digital Markets Act’s teeth and the bloc’s ability to enforce meaningful competition in the digital economy. The Commission is still reviewing Apple’s latest changes and could demand further simplification or impose additional penalties.
Apple’s regulatory battles extend beyond Europe, with similar scrutiny and legal challenges in the US, South Korea, Japan, and Australia. The company maintains that its App Store policies are designed to protect user security and privacy, while critics argue they entrench Apple’s market dominance.