Apple is set to become the first company fined under the European Union’s Digital Markets Act (DMA), according to Bloomberg.
The EU Commission plans to penalize Apple for its restrictive “anti-steering” rules, which limit app developers’ ability to direct users to cheaper purchasing options outside the App Store, a practice that the DMA prohibits.
This move comes after Apple’s recent €1.84 billion fine in March, tied to a complaint from Spotify. The EU found that Apple’s policies hurt competition by preventing developers from guiding users to alternative payment options, a requirement under the DMA.
The exact penalty is not yet confirmed, but the DMA allows fines of up to 10 percent of a company’s annual global revenue or as high as 20 percent for repeat offenses. Based on Apple’s revenue, the fine could reach up to $38 billion. The Commission may finalize and announce the fine this month before Margrethe Vestager, the EU’s competition chief, departs from her role.
In addition to the DMA violation, Apple is also under EU scrutiny for allegedly undermining third-party app stores. Just recently, Apple lost an appeal, requiring it to pay €13 billion in back taxes. CEO Tim Cook reportedly even contacted former President Donald Trump to express frustration over these accumulating fines.
