Apple faces antitrust challenges in E.U. and U.S. regarding App Store policies

Apple is contesting a nearly $2 billion fine imposed by the European Union over its App Store policies and is also seeking the dismissal of an antitrust case in the U.S.

According to sources from Bloomberg, Apple has filed a lawsuit to overturn the E.U. penalty. While the specific reasons for the challenge were not disclosed, an Apple spokesperson referenced a previous post from the company's newsroom, stating that officials had not found any evidence of harm.

The fine was a result of a complaint from Spotify, which claimed it had to increase prices to cover Apple's App Store fees, ranging from 15% to 30%. At the time, Apple mandated that all third-party apps in the E.U. use its system for in-app purchases and prohibited developers from mentioning alternative sign-up methods on their apps.

At the same time, Apple announced its intention to request the dismissal of a Justice Department antitrust lawsuit in the U.S., which alleges that the company exploited its dominance in the high-end smartphone market.

In a letter to U.S. District Judge Julien Neals, Apple argued that it faces strong competition and that the actions questioned in the lawsuit do not violate the Sherman Antitrust Act.

Apple asserted that its control over platform access is legally permissible and that there have been no anticompetitive consequences. The tech giant claimed that there is no evidence linking its ecosystem strategy to customers' purchasing decisions regarding phones.

The Justice Department lawsuit alleged that Apple artificially restricted digital wallets, messaging apps, and third-party smartwatches through its App Store regulations. It stated that Apple held a monopoly-like 70% share of the American "performance smartphone" segment and a 65% share of the overall smartphone market in the country.

Apple's pushback against these claims was expected. The company has already had to adjust its practices in the E.U. to comply with the Digital Markets Act, such as allowing direct app installations from the web. These changes could potentially reduce App Store revenue and make switching platforms easier. Apple is keen to avoid fines that would support regulators' arguments and to prevent the expansion of these mandatory changes to other markets.

However, any definitive resolutions will likely take some time. In the U.S., a hearing on the motion to dismiss is unlikely to occur before September, with a ruling expected later. These legal proceedings are unlikely to impact Apple's plans for the launch of the iPhone 16 this year.