Apple to appeal unprecedented $580 million fine from the EU
Over the past few years, Apple has been involved in a contentious back-and-forth battle with the EU over how it operates its App Store. The crux of the issue is whether or not Apple is properly adhering to the Digital Markets Act (DMA), a broad set of regulations designed to make the digital marketplace more competitive. The DMA, if you recall, is why Apple was required to allow third-party app stores and alternative payment methods into its iOS ecosystem.Failing to strictly adhere to the DMA brings with it some hefty financial penalties, something which Apple learned the hard way when it was hit with a nearly $580 million fine in April. The EU specifically fined Apple for not ensuring the App Store conforms to anti-steering rules. Put simply, Apple needs to make users aware of alternate payment methods on the App Store in a way that is clear and concise. The EU argues that Apple has not met this threshold because using a payment method outside of those built-in by Apple come with a hefty commission and isn't as accessible as it should be.The EU at the time explained:Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.As part of today's decision, the Commission has ordered Apple to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future, which includes adopting conduct with an equivalent object or effect.Apple plans to appeal the hefty App Store fineApple, meanwhile, recently announced its intention to appeal the fine. In a statement provided to various media outlets, Apple called the fine unprecedented.Today we filed our appeal because we believe the European Commission's decision--and their unprecedented fine--go far beyond what the law requires, an Apple representative said. As our appeal will show, the EC 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 Court.It will certainly be interesting to see how this all plays out. Especially given that Apple hasn't had the best of luck going up against the EU. More broadly, the case will potentially have far-reaching implications involving the degree to which regulators can have a say in how independent companies choose to run their businesses. Recall that several other US tech companies are also being investigated by the EU, a list that includes Google, Meta, and Amazon.Apple has more changes to make to comply with the DMAThe App Store, it's worth noting, isn't the only arena where Apple has to comply with EU-mandated changes. As we highlighted just a few weeks ago, a recent expansion of the DMA will require Apple to implement several additional changes to how third-party devices connect to the iPhone and various Apple services.Some of these changes include improved interoperability between the iPhone and third-party wearables, along with a more streamlined pairing process for non-Apple Bluetooth devices. And underscoring the extent to which the EU is seemingly nitpicking every aspect of the Apple user experience, it also wants Apple to make services like AirDrop accessible to non-Apple devices.Predictably, Apple is adamant that the EU is grossly overstepping. In a statement issued early last month, Apple explained:At Apple, we design our technology to work seamlessly together, so it can deliver the unique experience our users love and expect from our products. The EUs interoperability requirements threaten that foundation, while creating a process that is unreasonable, costly, and stifles innovation. These requirements will also hand data-hungry companies sensitive information, which poses massive privacy and security risks to our EU users. Companies have already requested our users most sensitive datafrom the content of their notifications, to a full history of every stored WiFi network on their devicegiving them the ability to access personal information that even Apple doesnt see. In the end, these deeply flawed rules that only target Appleand no other companywill severely limit our ability to deliver innovative products and features to Europe, leading to an inferior user experience for our European customers. We are appealing these decisions on their behalf, and in order to preserve the high-quality experience our European customers expect.The unfortunate reality is that Apple, due to various security considerations, will likely be more inclined to simply remove some features from EU devices rather than give in to overarching and unrealistic demands seemingly written by lawmakers with little or no background in mobile tech.Don't Miss: 7 hidden iOS 26 features iPhone users need to know aboutThe post Apple to appeal unprecedented $580 million fine from the EU appeared first on BGR.Today's Top DealsXGIMI Prime Day deals feature the new MoGo 4 and up to 42% off smart projectors
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