Apple refers to the European Commission's decision on Digital Markets Act (DMA)

Apple formally appealed to the Court of the European Union in Luxembourg to the European Commission’s decision on ‘steering’, that is to say, the provisions of Article 5(4) of the EU Digital Markets Act (DMA). The company questioned both the content of the decision and the evidence financial punishment imposed on it.

"Today we have appealed due to the fact that we believe that the decision of the European Commission — and the unprecedented punishment imposed — goes far beyond what the law provides for. As we will show in our appeal, the European Commission imposes the way we are expected to run our store, and imposes business conditions that are illegible to developers and harmful to users. We introduced these changes to avoid regular fines, and we will present all the facts to the Court," Apple informed.

A dispute over the “layer” App store service model

One of the main points in dispute is the issue of the fees charged to developers within the App Store. Apple points out that the European Commission initially accepted the alleged store Services Fee concept – a single fee for store services, including handling, safety and promotion of applications.

In consequence to these suggestions, Apple introduced a uniform, simplified fee. However, at a later stage, the Commission requested the introduction of a layer model allowing developers to opt out of certain services in exchange for lower rates. According to Apple, this has led to a crucial complexity of the offer, which makes it hard for both developers and users to realize the rules of operation of the App Store.

The company emphasizes that specified a model does not be in any another application store and that it was forced to transfer the search and discovery function of the application beyond the mandatory toll range.

A wide explanation of the “steering” rules

The explanation of the alleged "steering" rules is even more controversial. According to the law in force since last year, Apple has enabled developers to decision users to external websites where they could finalise purchases of digital products and services outside Apple.

The company further authorised alternate payment service providers within the application. However, according to Apple, the European Commission has importantly and unlawfully extended the definition of ‘steering’ in Article 5(4) of the DMA.

According to Apple, the Commission requested that ‘steering’ include not only external links, but besides the promotion of alternate payment methods inside the application, including through web view, and links to competing stores with applications and applications offered by these platforms.

Apple points out that specified an explanation ‘fundamentally changes’ the meaning of the word ‘steering’, diverging from the intention of the legislature and going beyond what the law provides for.

Future of the dispute before the EU Court

Apple’s appeal launches a fresh phase in the dispute with the European Commission over the form of EU regulation on the digital market. The Court of Justice of the European Union in Luxembourg will gotta measure whether the actions of the Commission fall within the limits of the law and whether the penalties and requirements applied are proportionate.

For Apple, the result of this procedure may be of crucial importance not only in the context of activities in Europe but besides in the global App Store. For the European Union, however, it is simply a test of the effectiveness of the fresh digital marketplace act and its real impact on the largest technological players.

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