Apple Faces €500 Million Fine Under EU’s Digital Markets Act for App Store Violations

By Mindi Soren

On April 23, 2025, the European Commission imposed a €500 million ($570 million) fine on Apple for breaching the European Union’s Digital Markets Act (DMA), marking the first penalty issued under the landmark regulation designed to curb the dominance of Big Tech. The fine targets Apple’s restrictive App Store policies, specifically its “anti-steering” rules, which have limited app developers’ ability to inform users about cheaper purchasing options outside Apple’s ecosystem. This decision underscores the EU’s commitment to fostering competition in the digital economy, even amidst geopolitical tensions, and signals a new era of regulatory scrutiny for tech giants.

The DMA and Apple’s Violation

The Digital Markets Act, which took effect in 2024, sets strict rules for “gatekeeper” companies like Apple, requiring them to ensure fair competition and greater consumer choice. One key provision mandates that app developers must be allowed to “steer” customers to alternative payment platforms without restrictions, free of charge. The European Commission found that Apple’s App Store policies violated this rule by preventing developers from directing users to external offers, thereby limiting access to potentially lower-cost alternatives.

According to the Commission, Apple’s restrictions stifled competition and reinforced its dominance over the app distribution market. “App developers distributing their apps via Apple’s App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers, and allow them to make purchases,” the Commission stated in its press release. The €500 million fine, equivalent to roughly 0.1% of Apple’s annual revenue, was determined based on the “gravity and duration” of the non-compliance, though it falls far short of the maximum penalty of 10% of global turnover allowed under the DMA.

In addition to the fine, the Commission issued a cease-and-desist order, requiring Apple to remove “technical and commercial restrictions” on steering by late June 2025. Failure to comply could result in further daily fines. The EU also escalated its enforcement by issuing a charge sheet regarding Apple’s handling of alternative app marketplaces, suggesting that the company’s support for third-party app stores in the EU remains inadequate. This includes criticism of Apple’s Core Technology Fee—a €0.50 per installed app charge for developers using alternative marketplaces—which the Commission argues disincentivizes competition.

Context and Broader Investigations

This fine is the latest in a series of EU actions against Apple, which has faced mounting antitrust scrutiny. In March 2024, the Commission fined Apple €1.84 billion ($2 billion) for similar anti-steering practices in the music streaming market, following a complaint from Spotify. In September 2024, Apple lost a legal battle, forcing it to pay €13 billion ($14.4 billion) in back taxes to Ireland. The DMA fine, however, is significant as the first under the new regulation, setting a precedent for how the EU will enforce its digital competition rules.

The Commission is also investigating Apple’s compliance with other DMA obligations. A separate probe, launched in March 2024, questions whether Apple’s design of its browser choice screen hinders users from selecting rival browsers like Chrome or Firefox. While this investigation was closed in March 2025 after Apple made adjustments, the Commission continues to scrutinize Apple’s interoperability measures for third-party devices, such as smartwatches and headphones, to ensure they work seamlessly with iOS.

Geopolitical Backdrop

The timing of the fine has drawn attention due to ongoing trade tensions between the EU and the United States. U.S. President Donald Trump has criticized the DMA, calling it “overseas extortion” of American companies and threatening retaliatory tariffs if the EU targets U.S. tech firms. In February 2025, the White House signalled it might respond to DMA enforcement with trade measures, complicating transatlantic relations. Despite these pressures, EU Competition Commissioner Teresa Ribera emphasized that the fines are about enforcing clear and predictable rules, not engaging in trade disputes. “Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms,” Ribera said.

Some reports suggest the EU delayed the fine announcement, initially expected in March 2025, to navigate these political sensitivities. However, Commission President Ursula von der Leyen has insisted that the bloc’s digital rules must be enforced, regardless of external factors. The relatively modest fine—compared to the potential maximum—may reflect a cautious approach to avoid escalating trade conflicts while still asserting regulatory authority.

Apple’s Response and Next Steps

Apple has not publicly commented on the fine but is expected to appeal, as it has with previous EU penalties. The company has argued that DMA-mandated changes increase risks for users and developers, citing potential exposure to malware, fraud, and scams. In its March 2025 DMA compliance report, Apple reiterated concerns that opening its ecosystem could compromise user security and privacy, a stance that has drawn scepticism from regulators and competitors.

The Commission’s orders require Apple to revise its App Store policies promptly. This could mean allowing developers to include links or prompts directing users to external payment platforms without incurring Apple’s standard 17% commission on out-of-app purchases. Additionally, Apple may need to simplify the process for users to download and install third-party app stores, addressing complaints that its current system is overly complex and burdensome.

Implications for Big Tech

The fine, alongside a €200 million penalty issued to Meta for its “pay or consent” advertising model, signals that the EU is serious about enforcing the DMA. While the penalties are modest relative to the companies’ revenues, they serve as a warning that non-compliance will have consequences. The DMA’s focus on compliance over punishment, as emphasized by Olivier Guersent, Director General of the Commission’s competition directorate, suggests that the EU prioritizes systemic changes to business models over crippling fines. However, the threat of larger penalties—up to 20% of global turnover for repeated violations—looms for companies that fail to adapt.

For Apple, the fine adds to its growing regulatory challenges, both in the EU and the U.S., where it faces antitrust lawsuits over its App Store practices. The outcome of this case could force Apple to rethink its tightly controlled ecosystem, potentially opening the iPhone and iPad to greater competition. For consumers, this may translate to more choice and potentially lower prices for apps and in-app purchases, though Apple’s warnings about security risks could resonate with some users wary of a less curated ecosystem.

Looking Ahead

The €500 million fine is likely just the beginning of Apple’s battles under the DMA. With ongoing investigations into its browser choice screen, third-party app store policies, and device interoperability, the company faces a complex compliance landscape. The EU’s aggressive enforcement could also embolden other regulators globally, as seen in Japan and South Korea, where similar app store reforms have been proposed. Meanwhile, competitors like Spotify, Epic Games, and smaller developers are cheering the EU’s actions, hoping for a more level playing field.

For the broader tech industry, the DMA’s early enforcement sets a clear tone: gatekeepers must adapt to a world where openness and competition are non-negotiable. As the EU refines its approach—potentially adjusting fines to account for inflation or economic impact, as suggested by some analysts—companies like Apple, Meta, and Google will need to balance innovation with compliance to avoid escalating penalties.

Conclusion

Apple’s €500 million fine under the Digital Markets Act marks a pivotal moment in the EU’s campaign to rein in Big Tech. By targeting the company’s restrictive App Store policies, the European Commission is pushing for a digital marketplace where developers and consumers have greater freedom. While Apple is likely to appeal and geopolitical tensions may complicate enforcement, the message is clear: even the most powerful tech giants must play by the EU’s rules. As the DMA continues to reshape the tech landscape, the world will be watching to see how Apple—and its peers—navigate this new regulatory reality.

Mindi Soren is a freelance journalist and writer for Veritas Expositae

You can reach her at mindi.soren@veritasexpositae.com