Apple reportedly facing first-ever EU fine over App Store rules
Image: Cath Virginia / The Verge
Apple will soon become the first company to incur a fine for violating the European Union’s Digital Markets Act (DMA), reports Bloomberg. Sources tell the outlet that the Commission is getting ready to levy the penalty after it found that Apple’s “anti-steering” practices harmed competition on the App Store.
This follows the EU’s €1.84 billion (around $2 billion) fine imposed on Apple in March. After investigating a complaint from Spotify, the EU Commission ruled that Apple restricted developers’ ability to point users to cheaper purchases outside the App Store in March — a practice that’s illegal under the DMA.
We still don’t know how much the EU will fine Apple, but the DMA rules say companies can be charged up to 10 percent of annual global revenue and up to 20 percent for repeat offenses. Based on Apple’s revenue last year, the EU’s initial fine could add up to as much as $38 billion. The Commission may announce the fine as soon as this month before competition head Margrethe Vestager leaves office, Bloomberg reports.
The Verge reached out to Apple with a request for comment but didn’t immediately hear back.
Apple is also facing an investigation over whether it’s undermining alternative app stores in the EU. In September, the EU won its fight to make Apple pay €13 billion (about $14.4 billion) in unpaid taxes. Apple CEO Tim Cook even allegedly called former President Donald Trump to complain about the fines his company has accrued.
Image: Cath Virginia / The Verge
Apple will soon become the first company to incur a fine for violating the European Union’s Digital Markets Act (DMA), reports Bloomberg. Sources tell the outlet that the Commission is getting ready to levy the penalty after it found that Apple’s “anti-steering” practices harmed competition on the App Store.
This follows the EU’s €1.84 billion (around $2 billion) fine imposed on Apple in March. After investigating a complaint from Spotify, the EU Commission ruled that Apple restricted developers’ ability to point users to cheaper purchases outside the App Store in March — a practice that’s illegal under the DMA.
We still don’t know how much the EU will fine Apple, but the DMA rules say companies can be charged up to 10 percent of annual global revenue and up to 20 percent for repeat offenses. Based on Apple’s revenue last year, the EU’s initial fine could add up to as much as $38 billion. The Commission may announce the fine as soon as this month before competition head Margrethe Vestager leaves office, Bloomberg reports.
The Verge reached out to Apple with a request for comment but didn’t immediately hear back.
Apple is also facing an investigation over whether it’s undermining alternative app stores in the EU. In September, the EU won its fight to make Apple pay €13 billion (about $14.4 billion) in unpaid taxes. Apple CEO Tim Cook even allegedly called former President Donald Trump to complain about the fines his company has accrued.