Apple to be first big tech company charged under new EU digital laws

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Apple News

European-Commission

If in breach of the Digital Markets Act, Apple faces daily penalties of up to 5% of its average daily worldwide turnover

The European Commission believes Apple is not allowing app developers to “steer” users to offers outside its App Store. Photograph: GettyBrussels is set to charge Apple over allegedly stifling competition on its mobile app store, the first time EU regulators have used new digital rules to target a Big Tech group.

These people said regulators have only made preliminary findings, and Apple could still take actions to correct its practices, which could then lead regulators to reassess any final decision. They added the timing of any announcement could also shift. If found to be breaking the DMA, Apple faces daily penalties for noncompliance of up to 5 per cent of its average daily worldwide turnover, which is currently just over $1 billion . The move comes as competition watchdogs around the world increase their scrutiny of Big Tech companies and their market dominance. In March, the US brought an antitrust case against Apple for allegedly using its power in the smartphone sector to squash rivals and limit consumer choice.

However, the EU is also looking at whether these fee changes properly adhere to its new digital rules. Apple introduced new charges in Europe, including a “core technology fee” of 50 cents on developers with apps that have more than one million users for every first instalment by a user. Apple will also charge an additional 3 per cent fee to app developers that use its payment processor.

 

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