Apple hits back against ‘unprecedented’ €500m EU fine

Apple is appealing against a €500m (£430m; $586m) fine handed down by EU regulators over alleged anti-competitive behaviour on its App Store.

The European Commission said in April that the tech giant had breached its laws by restricting app developers in their ability to inform customers of alternative offers or marketplaces that could be found outside its own and steer them towards purchases.

Apple called the Commission’s fine “unprecedented” on Monday, saying the decision and its penalty “go far beyond what the law requires”.

A Commission spokesperson told the BBC it took note of Apple’s filing and would defend its decisions in court.

The company objects to the Commission requiring it to make further concessions to app developers, including provision of tiers for services which it says introduce more complexity to its options for users and businesses.

“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,” Apple said in a statement.

“We implemented this to avoid punitive daily fines and will share the facts with the Court.”

Paolo Pescatore, technology analyst at PP Foresight, said Apple’s appeal was a “widely expected move” that “sets the precedent for others”.

“It is disappointing that it now has to be settled in a long, drawn public process in the courts,” he said, adding the nature of changes required by regulators – and enforcement of them – can be lengthy and complex.

“We should not underestimate the sheer complexities of having to make fundamental design, operational and commercial changes to well-established services and the time it takes to enforce them,” he told the BBC.

“As always the devil is in the detail, which will inevitably take more time to unravel.”

The Commission’s Apple fine was delivered in April alongside a penalty on Facebook owner Meta of €200m (£171m) over choice for users under its “consent or pay” model.

The fines were the first imposed under the EU’s Digital Markets Act (DMA) – its landmark legislation designed to boost competitive business practice in online markets.

The law also carries tougher obligations for companies designated dominant “gatekeepers” in certain sectors, and firms face hefty fines of up to 10% of their annual global turnover for rule breaches.

Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy, said at the time that both companies had undermined the key principles of the DMA – to enable free business and choice for consumers.

Apple said it was being “unfairly targeted” and forced to “give away our technology for free”.

It also accused the regulator of “[moving] the goal posts” during their meetings.

It has now escalated its complaint to the EU’s second highest court, the General Court.

The EU’s strict regulation of large US tech firms has also attracted scrutiny from President Donald Trump’s administration.

Trump said in January that he had “some very big complaints with the EU” regarding its treatment of American tech companies, likening fines upon them to “a form of taxation”.

Speaking on a podcast in October, he said Apple’s boss Tim Cook had also called him to complain about the bloc’s fines.