TLDR
- Apple appealed a €500 million ($580 million) EU fine for App Store violations, calling it “unprecedented”
- The company changed EU App Store policies in June with new tiered commission structure of 5% or 13% plus 2% user acquisition fee
- Apple is exploring cloud infrastructure market with internal Project ACDC targeting AWS and Azure
- The cloud project uses Apple’s M-series chips optimized for AI inference tasks
- Apple currently spends close to $1 billion annually on Amazon’s cloud platform
Apple filed an appeal against the European Union’s €500 million fine on Monday, marking the latest chapter in its ongoing regulatory battles. The iPhone maker called the penalty “unprecedented” and criticized the required changes to its App Store as “unlawful.”
Apple appeals a €500 million fine from the EU, calling the penalty “unprecedented” and the regulator’s required changes to its App Store as “unlawful” https://t.co/e9wDJXmnJ8
— Bloomberg (@business) July 7, 2025
The European Commission imposed the fine in April under its Digital Markets Act. Regulators said Apple violated rules about allowing developers to steer users to make purchases outside its store.
Apple responded in June by changing its EU App Store policies to meet local requirements. The company introduced a tiered commission structure with rates of either 5% or 13% on top of a 2% user acquisition fee.
The new structure depends on whether apps want to appear in App Store search suggestions. It also covers promotional material and automatic updates.
Apple argues that regulators demanded this confusing approach. The company maintains that no other app download store faces such requirements.
“We believe the European Commission’s decision goes far beyond what the law requires,” Apple said in a statement. “The EC is mandating how we run our store and forcing business terms which are confusing for developers and bad for users.”
The changes also allow developers to promote out-of-app payment processing more freely. This lets them sidestep some of Apple’s fees.
Apple said the Commission unlawfully expanded the definition of steering. This means developers can point users to make transactions elsewhere in more cases.
Cloud Infrastructure Push
While fighting regulatory battles, Apple is quietly exploring a new frontier. The company is developing cloud infrastructure services that could compete with Amazon Web Services and Microsoft Azure.
Internal documents reveal Project ACDC, which stands for Apple Chips in Data Centers. The initiative would offer developers access to servers powered by Apple’s M-series chips.
The project gained momentum in early 2024. However, its future became uncertain after Michael Abbott, a key executive, left the company.
Apple has already deployed parts of the system internally. Features like Apple Music and Photos search now run on Apple Silicon servers.
These servers have improved performance while reducing power usage and infrastructure costs. The company believes this approach could be more cost-effective for developers than traditional Intel or AMD-powered servers.
Apple’s M-series chips include neural engines that deliver up to 38 trillion operations per second. They’re supported by high-bandwidth memory capable of 800 gigabytes per second.
Market Opportunity
The cloud infrastructure market represents a massive opportunity. AWS alone generated $25 billion in revenue in Q1 2024.
Even a small market share could boost Apple’s services business. The services division brought in over $23 billion in Q2 2025.
Apple currently spends close to $1 billion per year on Amazon’s cloud platform. Moving to its own infrastructure could reduce this dependence.
If Apple launches the service publicly, it would likely carry the iCloud branding. This would strengthen the company’s growing services business.
The company has not confirmed any timeline for a public release. Project ACDC remains an internal effort with limited visibility beyond Apple’s walls.
Analysts give Apple stock a Moderate Buy rating based on 27 analyst opinions. The average price target is $226.36, implying a 6% upside from current levels.
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