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Apple to face first EU antitrust fine under digital markets act

November 6, 2024
in Tech
Apple to face first EU antitrust fine under digital markets act
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Apple is poised to become the first company to be fined under the European Union’s landmark antitrust regulations aimed at curbing the power of Big Tech, according to sources familiar with the matter.

In June, regulators charged the iPhone maker for violating the bloc’s tech laws.

The Commission’s complaint against Apple was its first under the Digital Markets Act.

According to reports, the fine will most likely be levied this month, but the timing may change.

The fine would worsen Apple’s increasing antitrust concerns, as EU regulators attempt to level the playing field for smaller competitors.

This comes only months after Brussels fined Apple €1.84 billion in March for limiting competition from music streaming rivals through App Store limitations, Apple’s first ever punishment for violating EU rules.

Apple is also under scrutiny for additional fees placed on app developers.

DMA infractions may result in a fine of up to 10% of a company’s global annual turnover.

The Digital Markets Act (DMA), which went into effect earlier this year, compels Apple to let users pick their preferred web browser as the default on iPads, to allow rival app stores on its operating system, and to let headphones and smart pens access iPad OS functions.

Apple declined to respond. The European Commission did not immediately respond to Reuters’ request for comment.

Apple also lost a long-running legal dispute with the EU in September, forcing the business to pay €13 billion in back taxes to Ireland.

Watchdogs are readying the penalty after Apple failed to allow app developers to steer users to cheaper deals and offers outside of the App Store, Bloomberg reported, citing people familiar with the case.

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