Apple towards the first European sanction: billion dollar fine on the way

Apple is preparing to face its first-ever fine under the European Union’s Digital Markets Act (DMA), possible as early as the end of this month. The news, reported by Bloomberg, follows a previous Financial Times leak in June, which indicated a possible fine of up to 5% of Apple’s average global daily revenue of over $1 billion. The European Commission had already ruled in June that Apple violated the DMA, in particular for not allowing app developers to direct users to cheaper offers and purchases outside the App Store. Anonymous sources close to the dossier, cited by Bloomberg, say that the control body is preparing the sanction.

Although the European Commissioner for Competition, Margrethe Vestager, is about to leave her post soon, it is possible that the fine will be imposed before the end of her mandate. The decision, however, is not yet final and could be postponed until the end of the year. In addition to the fine, Apple may also face periodic fines until it fully complies with the regulations. For its part, Apple unveiled its DMA compliance plans in January, then implemented them with iOS 17.4 in March. Among the changes introduced, a significant reduction in App Store fees, revised requirements for app marketplaces, changed the fee structure for core technologies and the addition of web distribution. In August, Apple announced additional changes related to browser choices, default apps, and the ability to delete apps in the EU. iOS 18.2, currently in beta testing, includes additional changes in response to the DMA.

Just yesterday, the European Commission announced the launch of an evaluation to verify whether the iPad offers sufficient interoperability. Apple remains confident that the changes made comply with the DMA and reiterates its willingness to collaborate with the European Commission during the investigations. It remains to be seen whether the Commission will deem Apple’s efforts sufficient or proceed with the fine, writing a new chapter in the complex relationship between the tech giant and European regulators.