Apple is set to be fined by the European Union under its Digital Markets Act (DMA), marking the first penalty for a major tech company under the landmark regulations designed to curb the power of Big Tech. Sources with direct knowledge of the matter have confirmed the impending fine, which is expected to be issued this month, although the timing could still change.
The charge against Apple, which was first brought by the European Commission in June, stems from alleged violations of the DMA, the EU’s new set of rules aimed at promoting fair competition in the digital market. The fine comes as EU regulators seek to level the playing field for smaller tech firms by taking on the practices of tech giants like Apple.
This fine adds to Apple’s growing antitrust woes in Europe. In March, the company was fined €1.84 billion for anti-competitive practices involving its App Store, marking its first-ever penalty for breaching EU competition rules. The company is also currently under investigation for new fees it imposed on app developers, further intensifying its regulatory challenges in the region.
Under the Digital Markets Act, which took effect earlier this year, Apple is required to make several changes to its operating practices. These include allowing users to set their preferred web browser on iPads, enabling alternative app stores on iOS, and permitting third-party devices like headphones and smart pens to interact with iPadOS features. Violations of the DMA can result in fines of up to 10% of a company’s global annual turnover, potentially reaching billions of dollars for Apple.
Apple has not commented on the pending fine, and the European Commission has yet to respond to a Reuters request for comment. Bloomberg, which first reported the news of Apple’s imminent penalty, noted that the company is facing scrutiny for failing to allow app developers to direct users to cheaper offers and deals outside of its App Store.
In addition to the DMA-related penalty, Apple also lost a protracted legal battle with the EU in September, which led to a ruling that the company must pay €13 billion in back taxes to Ireland. These legal and regulatory challenges represent a significant hurdle for the iPhone maker as it continues to face scrutiny from antitrust regulators on multiple fronts.
As the EU ramps up its efforts to regulate Big Tech, Apple’s growing legal troubles highlight the increasing scrutiny companies like it face in global markets.