Apple could be receiving its first-ever DMA fine before the end of this month
Apple seems to be about to face its first-ever fine under the EU's Digital Markets Act or DMA as soon as this month, according to a Bloomberg report. The EU issued its decision finding Apple in breach of the DMA back in June of this year.
Back in June, the fine was reported to be as high as 5% of Apple's "average daily worldwide turnover", which could amount to over $1 billion. It seems now EU watchdogs are now readying the penalty. It's reportedly related to Apple not allowing app developers to steer users to cheaper deals and offers outside of the App Store, reported anonymous sources.
EU competition commissioner Margrethe Vestager will be leaving her role later this month, but it seems the fine was assessed previously. Reportedly, the decision has not yet been finalized. According to the sources, the European Commission may finalize the fine before Vestager is due to leave office later this month.
Of course, it's always possible that the decision may get pushed back to later this year. Reportedly, the fine could also be accompanied by periodic penalty payments that would go on until Apple complies with the regulations. The anonymous sources also said the decision is still being drafted.
Other changes Apple announced in August were related to the browser choice screen, default apps, and deletable apps in the EU. Despite all these efforts though, the EU is still scrutinizing the tech giant, now also investigating if the iPad offers sufficient interoperability.
Apple seems more than ready to work on complying with the DMA, and the company has said it continues to constructively engage with the European Commission.
These legal battles can continue for a long time. Even if a decision is reached, I think Apple can still appeal and the process can be dragged out. I sincerely wish these issues get addressed quickly and Apple implements the needed changes so we can all enjoy tech and not worry about tech giants getting penalized.
Back in June, the fine was reported to be as high as 5% of Apple's "average daily worldwide turnover", which could amount to over $1 billion. It seems now EU watchdogs are now readying the penalty. It's reportedly related to Apple not allowing app developers to steer users to cheaper deals and offers outside of the App Store, reported anonymous sources.
Of course, it's always possible that the decision may get pushed back to later this year. Reportedly, the fine could also be accompanied by periodic penalty payments that would go on until Apple complies with the regulations. The anonymous sources also said the decision is still being drafted.
Apple rolled its initial DMA compliance efforts with iOS 17.4 in March, which added a reduction in App Store commissions. Since then, Apple has been working on changing things to comply with the regulations, including revising app marketplace requirements.
Other changes Apple announced in August were related to the browser choice screen, default apps, and deletable apps in the EU. Despite all these efforts though, the EU is still scrutinizing the tech giant, now also investigating if the iPad offers sufficient interoperability.
Things that are NOT allowed: