Apple might be first in line to face fine under EU’s Digital Markets Act

Posted by By our-little-miss-is-home November 6, 2024 3 Views 3 Min Read
Apple DMA cover, Apple fine by the EU
  • Apple could be the first major tech company fined by the EU under the DMA.
  • The DMA fines up to 10% of a company’s worldwide revenue for violations.
  • The EU had opened a new non-compliance procedure against American tech giant back in June.

In an interesting development, Apple might become the first big name to be fined by the European Union’s antitrust regulators under the Digital Markets Act (DMA). The new fine follows years of examination of Apple’s software Store policy by EU regulators who claimed that Apple did not permit software developers to direct users to deals outside the App Store.

Apple might be fined up to 10% of its global revenue by the EU

It is no hidden truth that Apple’s App Store policies have been under scrutiny for years. As per the report by Bloomberg, the new fine comes after EU regulators accused Apple of not allowing app developers to guide users to alternative offers outside of the App Store. Apple is yet to comment on the matter.

Apple sideloading European UnionApple sideloading European Union
App Store (Image via Apple)

Under the DMA, regulators can fine companies up to 10% of a company’s global revenue for violations, with Apple potentially facing periodic fines until they comply. For context, in its recent financial report, Apple disclosed revenue of $94.9 billion for the quarter and up to 6% year over year, so we can do the calculations and how hefty the fines will be, even for a company of Apple’s scale.

This was not the first time Apple came under the scanner of the EU. In June, the EU opened a new non-compliance procedure against Apple, pointing to the same issue that the American tech giant prevented developers from informing customers about cheaper options or promotions outside the App Store.

Google Play Store coverGoogle Play Store cover
Google Play (Image via Google)

With recent regulatory moves, especially from the EU’s Digital Markets Act, the playing field is shifting from the monopoly of Google and Apple. Earlier in October this year, Google was also ordered to open the Play Store to competing third-party App Stores in the U.S. and give these stores full access to apps, unless developers choose otherwise.

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