Apple may soon be facing a hefty fine from the EU over its App Store policies. It would be the first time the iPhone maker will be penalized under the EU’s Digital Markets Act (DMA).
Apple to be the first company penalized under the EU’s DMA for its App Store policies
Apple was declared guilty of enforcing “steering” policies on its App Store by the EU earlier this year. The European Commission also started a new investigation into Apple’s lackluster support for alternative iOS marketplaces in Europe.
The EU alleged Apple is undermining alternative iOS app stores. However, Apple is to face a hefty fine under the EU’s DMA, Blomberg has reported. This would make Apple the first company to face financial penalties under the DMA.
The Commission is gearing up to levy the penalty after it found that Apple’s “anti-steering” practices harmed competition on the App Store. Simply put, the EU concluded Apple does not wholly support the concept of allowing developers to guide or point users to cheaper purchases outside the App Store. EU deemed this behavior illegal under the DMA back in March.
How much fine Apple may have to pay the EU?
Incidentally, it is not just Apple that is facing heat or steep fines from the EU. Other tech giants such as Google and Meta are also under scrutiny, and they are facing some very hefty fines.
Back when Spotify had complained to the EU, the latter had slapped a €1.84 billion (about $2 billion) fine on Apple over its App Store policies. Incidentally, Spotify’s complaint about Apple’s anti-steering practices predates the DMA.
Currently, Apple is facing fresh proceedings into the company’s support for alternative iOS and iPadOS app stores. The EU has objected to Apple’s Core Technology Fee, its eligibility requirements for developers, and also its outlook towards third-party accessories. Additionally, the EU continues to allege Apple hasn’t made it easy for iPhone users to switch to third-party marketplaces.
The DMA rules state companies can be charged up to 10 percent of annual global revenue and up to 20 percent for repeat offenses. This reportedly translates to a $38 billion fine. Apple is yet to comment on the development. However, Apple would most likely contest whatever amount the EU decides.
