EU Antitrust Regulators to Fine Apple Under Landmark Regulations

The European Union’s antitrust regulators are set to impose a fine on Apple under the bloc’s landmark rules for allegedly violating the Digital Markets Act (DMA), the bloc’s landmark legislation designed to reduce the market dominance of Big Tech firms. This makes it the first company to be sanctioned under these regulations.

Apple is being charged with practices that may restrict competition, including limiting users’ access to alternative app stores and requiring apps to use its own payment systems, which can prevent developers from offering cheaper options outside the App Store.

In June, regulators charged Apple with violating the bloc’s tech regulations, marking the first case against the iPhone maker under the Digital Markets Act (DMA). The DMA violations could lead to a fine of up to 10% of a company’s global annual turnover. According to sources, the fine is expected to be issued this month, though the exact timing may still change.

This penalty would add to Apple’s growing list of antitrust issues as EU regulators work to create a more competitive environment for smaller firms.

Also Read:  Digital Markets Act: EU to Review Apple’s iPad OS Compliance

Just months ago, in March, Brussels fined Apple €1.84 billion ($2.01 billion) for restricting competition from music streaming competitors on its App Store – the company’s first-ever penalty for breaching EU rules. Apple also faces an investigation over newly imposed fees on app developers.

The DMA, which came into effect earlier this year, requires Apple to allow users to set their preferred default web browser on iPads, permit alternative app stores on its operating system, and ensure that headphones and smart pens have access to iPad OS features.

In September, Apple lost a long-standing court case with the EU, resulting in a €13 billion back-tax payment to Ireland.

On Tuesday, Bloomberg initially reported Apple’s impending EU fine, stating that regulators were preparing the penalty after Apple failed to allow app developers to direct users to cheaper deals outside the App Store.