Apple faces a fine under the EU’s landmark digital markets law

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European Union antitrust regulators will fine Apple under the bloc’s landmark rules aimed at curbing the power of Big Tech, making it the first company to be sanctioned, sources with direct knowledge of the matter said on Tuesday.

In June, regulators accused the iPhone maker of violating the block’s technical rules. The charges against Apple were the first charges brought by the Commission under the Digital Markets Act (DMA).

The fine is likely to be imposed this month, although the timing is still subject to change, the sources said.

The fine will exacerbate Apple’s antitrust problems as EU regulators try to level the playing field for smaller companies.

It comes just months after Brussels fined Apple 1.84 billion euros ($2.01 billion) in March for hindering competition from music streaming rivals through restrictions on its App Store. This is Apple’s first ever penalty for violating EU rules.

Apple is also facing an investigation into new fees imposed on app developers. A violation of the DMA can result in a fine of up to 10 percent of the company’s global annual turnover.

The Digital Markets Act (DMA), which went into effect earlier this year, requires Apple to allow users to set the default web browser of their choice on the iPad, allow alternative app stores in its operating system, and allow headphones and smart pens to access iPad Features OS.

Apple declined to comment. The European Commission did not immediately respond to Reuters’ request for comment.

Apple also lost a long-running legal battle with the EU in September, forcing the company to pay Ireland €13 billion (roughly Rs. 1,17,941 crore) in back taxes.

Earlier on Tuesday, Bloomberg first reported on the imminent EU fine for Apple.

Watchdogs are preparing for punishment after Apple prevented app developers from directing users to cheaper deals and offers outside the App Store, Bloomberg reported, citing people familiar with the matter.

© Thomson Reuters 2024

(This story was not edited by NDTV staff and was automatically generated from a syndicated feed.)

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