EU Fines Apple €500M for App Store Anti-Steering Practices
In a significant move, the European Commission has fined Apple Inc. €500 million for 'anti-steering' practices within its App Store. The tech giant, however, has challenged this decision, arguing that the EU's Digital Markets Act (DMA) poses security risks to users and unfairly targets Apple.
The commission accused Apple of preventing developers from informing users about cheaper purchasing options outside the App Store. Apple, in response, contends that the DMA forces alternative app stores on iPhones, exposing users to potential security threats and unwanted content. The company argues that the regulation unfairly targets Apple while neglecting competitors.
Earlier this year, a California judge ruled in favour of developers, allowing them to direct users to the web for in-app transactions. Apple, however, maintains that the European Commission has unlawfully expanded the definition of 'steering' in-app purchases. The company has labelled the fine 'unprecedented' and the required changes to its App Store 'unlawful'.
In an effort to comply with local requirements and avoid additional penalties, Apple recently updated its E.U. App Store policies in June. The company now allows developers to promote out-of-app payment processing for digital goods, effectively skirting some of its fees.
The €500 million fine is the latest in a series of costly penalties the E.U. has imposed on firms like Google and Apple for anti-competitive behaviour. Apple's appeal against the fine is ongoing, with the company maintaining that the DMA poses significant risks to users and is unfairly applied.
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