Apple faces potential daily fines of $1 billion from the European Commission for allegedly breaching its Digital Markets Act (DMA), as reported by the Financial Times. The EU Commission has determined that Apple is not in compliance with DMA legislation, which mandates fair competition practices in digital markets. If found guilty, Apple could incur fines of up to 5% of its daily turnover, exceeding $1 billion.
In response to these allegations, Apple has announced policy changes aimed at complying with DMA requirements. These changes include allowing alternative app stores and payment systems on its platform.
Additionally, Apple introduced a “core technology fee” where developers would pay €0.50 per app install annually after the first install, applicable to apps distributed through both the App Store and alternative storefronts.
Apple asserts confidence in its compliance with DMA regulations. In a statement, the company expressed its commitment to constructive engagement with the EU Commission throughout its investigation process.
Earlier this year, the EU Commission initiated investigations into major tech companies including Google, Meta, and Apple, focusing on potential infringements related to the DMA, particularly Apple’s practices regarding app store steering.
The situation underscores ongoing tensions between global tech giants and regulatory bodies aiming to enforce fair competition and consumer protection in digital markets. Apple’s proactive adjustments to its policies reflect efforts to navigate regulatory scrutiny while maintaining its market position amidst evolving legislative landscapes in the EU and beyond.
