Apple’s troubles with the EU aren't over yet, and we could end up seeing the tech giant incurring a fine for violating the Digital Markets Act (DMA). According to sources talking to Bloomberg, the European Commission could end up fining Apple due to its “anti-steering practices” that harmed competition for the App Store.
This would be the first time any company has been fined under the EU’s new antitrust rules. Apparently, the penalty is down to the fact Apple “failed to allow app developers to steer users to cheaper deals and offers outside of the App Store”.
This comes after the EU warned Apple about not offering developers “effective means” to direct users away from the App Store. The company is also under investigation over whether it’s been hampering attempts to launch alternative app stores in the region. But the results of that investigation likely won’t be known for some time.
It’s not clear how much Apple is likely to be fined right now, but EU rules mean regulators have the power to fine considerable sums of money. That starts with up to 10% of global sales, which can increase to 20% with repeated infringements. Other fines can account for up to 5% of average daily revenue.
Considering Apple generated $383 billion of revenue last year, this fine could be as high as $38 billion based on Apple’s total revenue last year. That puts Apple’s previous EU fine, totaling €1.8 billion ($1.93 billion) for abusing its power in the music streaming market, to shame. That fine was levied under older competition laws, but it’s just another example showing how Apple isn’t really having a good time in Europe.
It’s not clear when Apple may be hit with this fine, but Bloomberg reports that it could happen before the end of the month — when current competition commissioner Margrethe Vestager is due to leave office. However, it could also be pushed back to an unspecified point later in the year, accompanied by “periodic penalty payments” that will rack up until Apple complies with the law.
The decision is apparently still being drafted, so we’ll have to be patient to see how the fine actually plays out in the coming months.
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