Apple may soon become the first company fined for breaching the EU’s Digital Markets Act (DMA), as reported by Bloomberg. According to sources, the European Commission is preparing to impose this fine after concluding that Apple’s App Store policies have been detrimental to fair competition.
Background on the EU’s Investigation and Previous Fine
This fine follows a recent €1.84 billion penalty against Apple, issued in March. The penalty was the result of a European Commission investigation prompted by a complaint from Spotify, which argued that Apple unfairly restricted developers from directing users to external payment options that offer lower prices than those on the App Store. This practice, deemed anti-competitive under the DMA, restricts developers’ access to potentially cheaper alternatives, limiting both consumer choice and market competition.
Potential Fine Amount and Additional EU Investigations
While the exact fine amount is yet to be disclosed, DMA rules allow fines up to 10% of a company’s annual global revenue for a first offense and up to 20% for repeated violations. With Apple’s significant earnings last year, this penalty could reach up to $38 billion. The fine may be announced this month before the departure of EU antitrust chief Margrethe Vestager.
Beyond this case, Apple is also under investigation for allegedly blocking alternative app stores within the EU, adds NIX Solutions. Moreover, the EU secured a victory in September requiring Apple to pay €13 billion in overdue taxes.
We’ll keep you updated on developments in this case as the EU moves forward with its enforcement of the DMA and examines Apple’s compliance.