Apple May Encounter the EU’s First-Ever DMA Penalty as Early as This Month

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Apple May Encounter the EU’s First-Ever DMA Penalty as Early as This Month

According to Bloomberg, Apple is poised to receive its first fine under the Digital Markets Act in the EU as early as this month. This follows an announcement in June indicating that Apple had violated the DMA.

The current report from Bloomberg echoes earlier information from the Financial Times, suggesting that the potential fine may reach 5% of Apple’s “average daily worldwide turnover,” which exceeds $1 billion.

Details from today’s Bloomberg piece include:

Regulatory authorities are preparing to impose the penalty as Apple has not permitted app developers to direct users to less expensive offers and deals outside of the App Store, according to sources familiar with the matter who preferred to remain unnamed.

Margrethe Vestager, the EU competition commissioner, is scheduled to depart her position later this month. The report today suggests that there’s a possibility the fine may be issued prior to her departure, although the matter has yet to be finalized:

The European Commission might still issue the fine before Margrethe Vestager leaves office later this month, according to sources.

However, there is a possibility that the decision could be delayed until later this year. Additionally, the fine may come with ongoing penalty payments imposed on Apple until compliance with the law is achieved, with the decision still being drafted.

Apple initially presented its compliance measures for the DMA in January and implemented them with the release of iOS 17.4 in March, which included significant reductions in App Store commissions. Since then, the company has adjusted its plans further, altering app marketplace requirements, revising the Core Technology Fee structure, introducing Web Distribution, and more.

In August, Apple disclosed a range of modifications to the browser selection screen, default applications, and removable apps within the EU. Currently, iOS 18.2 is undergoing beta testing with developers and features additional changes in response to the Digital Markets Act.

Just yesterday, the European Commission announced it is evaluating whether the iPad ensures adequate interoperability.

Apple maintains that its modifications are consistent with the DMA, stating repeatedly: “We’re confident our plan complies with the DMA, and we’ll continue to engage constructively with the European Commission as they carry out their investigations.”

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