Apple Faces First EU Fine Under Digital Markets Act Over App Store Practices

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Apple Faces First EU Fine Under Digital Markets Act Over App Store Practices

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In a Rush? Here are the Quick Facts!

  • The fine targets Apple’s failure to allow alternative payment options outside its App Store.
  • The penalty follows a €1.8 billion fine in the Spotify case earlier this year.
  • The EU’s DMA aims to prevent anti-competitive behavior before it harms markets.

Apple Inc. is set to face a significant fine under the European Union’s Digital Markets Act (DMA) for anticompetitive practices related to its App Store, as first reported today by Bloomberg. The fine marks the first enforcement of the new rules targeting big tech companies accused of monopolistic behavior.

The European Commission is preparing the penalty after Apple allegedly failed to allow app developers to direct users to alternative, cheaper deals outside the App Store, as noted by Bloomberg. Reuters reports that sources suggest the fine is expected to be issued this month, though the timing could change.

This move comes after a similar €1.8 billion fine was imposed on Apple earlier this year for blocking Spotify from promoting cheaper subscriptions outside of Apple’s platform, said Bloomberg.

The EU’s Digital Markets Act (DMA) is designed to prevent anti-competitive behavior before it can harm the market. The penalty, expected to be issued soon, could include additional periodic fines if Apple fails to comply with the new regulations, reported Bloomberg.

Under the DMA, regulators can fine tech giants up to 10% of their global annual sales, with higher penalties for repeated violations. Additionally, the EU has forced Apple to allow third parties to access iPhones’ payment chips, opening up competition to Apple Pay, noted Bloomberg.

Apple has not commented on the potential fine, and the European Commission declined to provide further details, as reported by Bloomberg.

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