For those following the closely-watched court case, Apple has officially filed that appeal. This is why the company is appealing the European Union’s massive €500 million penalty. Apple was hit with a large penalty, estimated at $580 million. This penalty stems from its repeated violations of EU laws mandating that companies allow developers to task users with paying via other means, not through the App Store.
On Monday, they went one step further and appealed. This legal step is an attempt to litigate reversal of the EU’s finding that Apple had acted anticompetitively. The European Commission argues that Apple’s rules deliberately suppress competition among developers. They require developers to route all transactions through the App Store, which restricts users’ access to purchasing through other channels. This non-compliance has major consequences for developers, who are on the lookout for any additional flexibility in how they make payments.
Bloomberg, Reuters, and other outlets have now independently confirmed that Apple will be taking this matter to court. Apple argues that the European Commission’s decision is too harsh and fails to follow current legal requirements.
The European Commission’s decision and their unprecedented fine are far beyond what the law allows. Apple went on to argue that, “The EC is dictating the operations of our store. They’re imposing opaque business terms on developers—which hurts users in the end,” Bloomberg reports.
Since its inception, Apple’s App Store has operated under specific guidelines designed to ensure a uniform purchasing experience for users. The EU’s mandate upends this model. It argues that any developers who use app stores should be required to allow users to access other payment ecosystems. This requirement is a sea change in how digital marketplaces do business. It would be a groundbreaking change for app developers and consumers alike.
We have been encouraged to see the EU take a firm stand with their regulation of large tech platforms. This action aligns with FTC’s new push to ensure fair competition in the digital marketplace. The result of Apple’s appeal may create a new precedent for how tech giants and regulatory agencies interact in the future.