 "This isn’t the first time Apple has faced pressure under the DMA. Earlier in June, there were similar murmurs about a fine, though no action was taken at the time. Image Credit: Reuters")
The European Union’s recently enacted Digital Markets Act (DMA) might soon bring Apple its first hefty fine over non-compliance issues related to the App Store. Apple has been under intense scrutiny as it struggles to meet these new regulations, which aim to prevent major tech companies from monopolising digital markets. The heart of the issue lies in Apple’s “anti-steering” practices — rules that limit developers from directing users outside Apple’s ecosystem, which has repeatedly sparked criticism.
According to Bloomberg, the EU is reportedly considering a significant fine against Apple, though the specifics remain unclear. This decision might be finalised before EU competition chief Margrethe Vestager leaves office in November, although it’s possible the penalty could be delayed until next year. If implemented, the fines could reach up to 10 per cent of Apple’s global annual sales or 5 per cent of its average daily revenue, and would likely include follow-up penalties for continued non-compliance.
Anonymous sources told Bloomberg that Apple may face one substantial fine followed by periodic penalties if it remains out of line with the DMA. However, it’s uncertain which specific DMA requirements Apple is failing to meet, or which particular actions have provoked the EU’s latest scrutiny.
In Apple’s defence, the company has consistently claimed adherence to the DMA’s guidelines, though its approach has been to continually adjust its internal policies to stay within legal bounds. Just recently, Apple made a notable move by stripping away almost all of its anti-steering practices and scrapping the Core Technology Fee for the vast majority of iOS apps. Yet, questions linger over whether these changes are sufficient or have even been fully implemented.
This isn’t the first time Apple has faced pressure under the DMA. Earlier in June, there were similar murmurs about a fine, though no action was taken at the time. For now, the ball remains in the EU regulators’ court, as they assess Apple’s latest efforts and whether they meet both the letter and spirit of the law.
Impact Shorts
More ShortsEU regulators argue that Apple’s tweaks may satisfy the technical requirements but fall short of the DMA’s broader intent, which is to foster genuine competition and prevent big players from unfairly stifling smaller developers. The EU’s aim is to provide developers with a level playing field and reduce reliance on the App Store’s restrictive policies.
This battle between Apple and the EU seems set to continue, with no clear resolution in sight. As the DMA enforcement intensifies, Apple’s strategy of incremental policy changes might no longer be enough to placate European antitrust authorities determined to keep big tech in check. For now, Apple faces the challenge of navigating this new regulatory landscape while balancing its commercial interests and compliance demands.