Apple has argued the 500 million euro penalty under the landmark Digital Markets Act go far beyond what the law requires. The fine was levied in April over Apple’s restrictions on app developers
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Apple has filed a legal challenge against a 500 million euro ($587 million) fine imposed by European Union (EU) regulators, arguing that the penalty and ruling over its App Store practices go far beyond what the law requires.
The iPhone maker lodged its appeal on Monday (July 7), the final day to contest the decision, at the European Union’s General Court, the bloc’s second highest judicial body.
Why is Apple appealing the fine?
“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.
“As our appeal will show, the commission 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 (EU) court,” it added.
Why was Apple App Store fined?
In April, the European Commission found that Apple’s restrictions on app developers, which limited their ability to inform users of cheaper subscription options outside the App Store, violated the bloc’s landmark Digital Markets Act (DMA), designed to rein in the market power of major tech platforms.
Apple frequently slams the DMA, saying it has no choice but to make the changes under threat of large penalties.
Last month, Apple made significant changes to its App Store rules in response to the EU order, scrapping certain technical and commercial restrictions to avoid daily fines of up to 5 percent of its average global turnover, or roughly 50 million euros per day.
The Commission is currently gathering feedback from developers before determining whether Apple’s revised rules are sufficient or if further changes are needed.
With inputs from Reuters
