Bloomberg reports that Apple will soon be fined for violating the European Union’s Digital Markets Act (DMA). According to sources, the Commission is preparing to levy the penalty after finding that Apple’s “anti-steering” practices harmed App Store competition.
This isn’t Apple’s first run-in with EU regulators. In March, the company was already fined €1.84 billion (about $2 billion) after Spotify complained about Apple preventing developers from telling users about cheaper payment options outside the App Store.
The size of the new fine hasn’t been announced yet, but it could be huge. Under DMA rules, companies can be fined up to:
- 10% of their yearly global revenue for first offenses
- 20% for repeat violations
Based on Apple’s earnings last year, the first-time fine could reach $38 billion. The EU might announce the penalty this month before competition chief Margrethe Vestager leaves office.
Apple’s regulatory challenges in the EU don’t stop there. The company is also under investigation for possibly limiting competition from alternative app stores and was recently ordered to pay €13 billion ($14.4 billion) in unpaid taxes
Reports suggest Apple CEO Tim Cook has been concerned about these fines, allegedly reaching out to Donald Trump to discuss the situation.
