The European Commission may charge Apple for violating the Digital Markets Act after determining that the tech giant isn’t complying with obligations to allow app developers to “steer” users to offers outside of the App Store without fees, reports the Financial Times (a subscription is required to read the entire article).
Apple could face non-compliance fines of up to 5% of its average daily worldwide revenue, which is currently just over US$1 billion, according to the report. However, the FT, citing three people “familiar with the matter,”notes tthe EU has only made “preliminary findings” and that Apple could still make changes to avoid a fine.
The EU has previously fined Apple $1.9 billion for allegedly blocking rivals of Apple Music from promoting their potentially cheaper alternatives. Last month the tech giant filed a suit at the EU’s General Court in Luxembourg to overturn the decision.
This is all part of an ongoing brouhaha. In November 2023, Apple filed a legal case contesting decisions taken by the EC under its recently DMA, according to a post shared by the Court of Justice of the European Union on X.
The DMA will force Apple to allow users to utilize third-party app stores and payment systems. It will also force the company to make its Message interoperable with other messaging apps — including WhatsApp, and Facebook Messenger.
If Apple and other companies don’t comply, the European Commission can impose fines of up to 10% of the company’s total worldwide annual turnover or 20% in the event of repeated infringements and periodic penalty payments of up to 5% of the company’s total worldwide daily turnover.
Not surprisingly, Apple strongly opposes the DMA. The tech giant told ABC News on March 25 that “it was concerned that parts of the Digital Markets Act “will create unnecessary privacy and security vulnerabilities for our users while others will prohibit us from charging for intellectual property in which we invest a great deal.”
The EU is a political and economic union of 28 member states that are located primarily in Europe. Its policies aim “to ensure the free movement of people, goods, services, and capital within the internal market, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development.”
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