Apple launches major EU legal challenge

The United States tech giant Apple has launched a legal challenge against an "unprecedented" 500 million euro ($586 million) fine imposed by the European Commission in April over alleged app store abuses, marking the first major test of the European Union's Digital Markets Act, or DMA.

The iPhone maker has accused the Commission, the EU's executive arm, of exceeding legal requirements in the dispute, arguing that the Commission's actions force business decisions that both confuse developers and harm users.

The EU requests "go far beyond what the law requires", said Apple spokesperson Emma Wilson in a statement confirming that the company has lodged an appeal.

The Commission had fined Apple for a breach of the DMA after ruling that the company's technical and commercial restrictions prevented app developers from directing users to cheaper deals outside the app store, which is Apple's official platform for downloading iPhone apps.

Apple revised its app store policies last month to meet EU requirements and avoid daily fines of 50 million euro, or 5 percent of its global daily revenue.

The company then implemented new developer fee structures, but on Monday criticized Brussels for forcing it to adopt what it called "confusing" business terms under threat of penalties, reported The Guardian newspaper.

Apple's appeal challenges the Commission's interpretation of "steering" and its service requirements. The company argues the EU executive has expanded the DMA beyond its intended scope.

"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 its appeal to the general court, the EU's second-highest court.

"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."

Following Apple's June 26 app store rule changes, the commission is evaluating compliance with its April decision, with daily fines possible for any shortfall, reported Reuters. "The European Commission stands ready to defend its decision in court," said a spokesperson for the executive.

The Guardian noted that Peter Navarro, senior trade advisor to US President Donald Trump, has accused the EU of using "lawfare" against US tech firms, calling regulations part of a barrage of "non-tariff weapons" used by foreign states against the US.

Trump had initially set a July 9 deadline to seal a trade deal with the EU, but this has since been pushed back to Aug 1 for the bloc and other major trading partners still in talks.

EU tech chief Henna Virkkunen said in April "the EU will not rip up its tech rules in an attempt to agree a trade deal with the US", while Mark Zuckerberg, CEO of tech giant Meta, accused the bloc of "institutionalising censorship" via its digital rules.

jonathan@mail.chinadailyuk.com