Apple is set to face the first-ever fine under the Digital Markets Act in the EU as soon as this month, Bloomberg reports. The EU initially issued its decision that Apple was in breach of the DMA in June.
Today’s report from Bloomberg comes after a similar report from the Financial Times in June, which said fine could be as high as 5% of Apple’s “average daily worldwide turnover,” which is over $1 billion.
From today’s Bloomberg report:
Watchdogs are readying the penalty after the iPhone maker failed to allow app developers to steer users to cheaper deals and offers outside of the App Store, according to people familiar with the case, who spoke on condition of anonymity.
EU competition commissioner Margrethe Vestager is set to leave her role later this month. Today’s report says it’s possible the fine is assessed before then. The decision, however, has not yet been finalized:
The European Commission could still unleash the fine before current EU competition commissioner Margrethe Vestager is due to leave office later this month, according to the people.
But there was a chance it could be pushed back to later this year, they said. The fine could also be accompanied by periodic penalty payments, levied on Apple until it complies with the law, said the people, adding that the decision was still being drafted.
Apple unveiled its initial DMA compliance plans in January and rolled them out with iOS 17.4 in March, including a significant reduction in App Store commissions. Since then, the company has made a number of other changes to its plans, including revising app marketplaces requirements, changing the Core Technology Fee structure, adding Web Distribution, and more.
In August, Apple announced a series of changes to the browser choice screen, default apps, and deletable apps in the EU. iOS 18.2 is currently in beta testing with developers and includes further changes prompted by the Digital Markets Act.
Just yesterday, the European Commission announced that it is assessing whether the iPad offers sufficient interoperability.
Apple is adamant that its changes comply with the DMA, saying multiple times: “We’re confident our plan complies with the DMA, and we’ll continue to constructively engage with the European Commission as they conduct their investigations.”
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