Photo: European Commission
The European Commission will reportedly slap Apple and Meta with “modest fines” for breaching the DMA (Digital Markets Act).
The act became a law in EU countries in May 2023, forcing Apple to open its devices to third-party app stores and be more open to competition.
Apple may have to pay a small fine for breaching the DMA
Due to the DMA, Apple has made several notable EU-specific changes to iOS and iPadOS. This includes allowing third-party app stores and enabling users to sideload apps onto their iPhones. In typical Apple style, its execution has significant restrictions. However, thanks to the EU’s DMA, the company at least made these changes.
In June 2024, the European Commission issued a preliminary ruling stating that Apple had violated the DMA. It found that Apple’s rules “prevent [iPhone] app developers from freely steering consumers to alternative channels for offers and content.” Following this, Apple tweaked the App Store rules to ensure it did not break the DMA’s “steering” rules.
A Reuters report now details that Apple, along with Meta, will face “modest fines” from the European Commission. As per the DMA, the EU can fine companies as much as 10% of their global revenue for breaching the rules. However, sources indicate the penalty won’t be as severe, though officials have yet to finalize the amount. They will make a final decision later this month.
US could slap EU with tariffs for unreasonable fines
US President Donald Trump has criticized countries for imposing unwarranted fines on American companies. In a memorandum, he warned that the US may respond with tariffs of its own against such nations. The EU has consistently emphasized that its primary goal is for companies to comply with the DMA, not to burden them with unnecessary fines.
The European Commission also intends to make iPhones and iPads work better with third-party accessories like smartwatches, headphones, and VR headsets. It has begun investigating how Apple could effectively offer interoperability with such accessories.
