Apple reportedly facing massive EU fine over alleged monopoly tactic
Apple continues to face challenges with the European Union, and the possibility of the tech giant receiving a fine for breaching the Digital Markets Act (DMA) remains. Sources cited by Bloomberg indicate that the European Commission may impose a penalty on Apple due to its “anti-steering practices,” which have negatively impacted competition within the App Store.
This would mark the first instance of a company being fined under the EU’s newly established antitrust regulations. The potential penalty stems from Apple’s alleged failure to permit app developers to guide users towards more affordable options and offers outside the App Store.
This development follows a warning from the EU to Apple regarding the lack of “effective means” for developers to direct users away from the App Store. Additionally, the company is under scrutiny for potentially obstructing efforts to establish alternative app stores in the region. However, the findings of this investigation are not expected to be released for some time. While the exact amount of the potential fine remains uncertain, EU regulations empower authorities to impose significant financial penalties. These can begin at up to 10% of global sales and escalate to 20% for repeated violations. Other fines may reach up to 5% of average daily revenue. Given that Apple reported $383 billion in revenue last year, the fine could potentially reach as high as $38 billion, overshadowing Apple’s previous EU fine of €1.8 billion ($1.93 billion) for abusing its dominance in the music streaming sector. This earlier fine was issued under previous competition laws, further illustrating Apple’s ongoing difficulties in Europe.
The timeline for when Apple might face this fine is unclear, but Bloomberg suggests it could occur before the end of the month, coinciding with the departure of current competition commissioner Margrethe Vestager. Alternatively, the decision may be postponed to a later date, potentially accompanied by “periodic penalty payments” that would accumulate until Apple complies with the regulations.
