Home TECHNOLOGY Apple Faces Potential EU Fine of Up to 10% of Global Annual Revenue

Apple Faces Potential EU Fine of Up to 10% of Global Annual Revenue

by EUToday Correspondents

Apple is under scrutiny from the European Union, facing allegations of anti-competitive practices within its App Store.

This marks the first instance where EU regulators have enforced the newly established digital rules against a major tech conglomerate.

The European Commission’s actions fall under the Digital Markets Act (DMA), a stringent set of regulations aimed at curbing the dominance of large tech platforms and fostering competition from startups.

If found guilty, Apple could be fined up to 10% of its global annual revenue. Repeat offences could see fines escalate to 20%, according to EU statements.

The preliminary findings of the commission must be finalised within one year from the official investigation’s commencement in March.

Thierry Breton, the EU Commissioner for Internal Market, emphasised the significance of the new regulations, stating, “Apple’s new mantra should be ‘act differently’. Today, we are taking further steps to ensure that Apple complies with DMA rules.”

The European Commission, the EU’s executive body, also announced an investigation into whether Apple is violating the bloc’s developer rules. These include a charge of 50 cents per download for applications used by more than one million people.

The new investigation focuses on developer compensation, examining whether Apple imposes excessive restrictions on users for downloading and installing alternative app stores.

Brussels regulators are concerned about the limitations Apple places on developers’ ability to “freely manage their customers.”

Apple responded by stating that it has “made several changes to comply with the DMA in response to feedback from developers and the European Commission.”

The company expressed confidence in its compliance plan, noting that “over 99% of developers will pay Apple the same or lower commission under the new business conditions we have created.”

The outcome of this investigation could have significant implications for the tech industry, potentially reshaping the operational landscape for major technology firms and their interactions with both developers and users within the European Union.

Read also:

Digital Markets Act: European Commission Designates Apple as “Gatekeeper”

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