Apple could face a fine under the EU’s Landmark Digital Markets Act
Apple will be fined by the European Union’s antitrust regulators under the bloc’s landmark rules aimed at reining in the power of Big Tech. This makes Apple the first company to be punished, sources with direct knowledge of the matter said on Tuesday.
Regulators accused in June that the iPhone maker had violated the bloc’s technical rules. The indictment against Apple was the first by the Commission under its Digital Markets Act (DMA).
The fine is likely to come this month, although the timing could change, the sources said.
The fine would add to Apple’s mounting antitrust problems as regulators in the EU try to level the playing field for smaller companies.
This comes just months after Brussels fined Apple 1.84 billion euros ($2.01 billion) in March for thwarting competition from music streaming rivals through restrictions on the App Store – the first punishment once from Apple for breaking EU rules.
Apple is also facing an investigation into new fees imposed on app developers. Violations of the DMA can result in a fine of as much as 10 percent of a company’s annual global 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 iPads, allow alternative app stores on the operating system, and allow headphones and smart pens access to give up the iPad OS features.
Apple declined to comment. The European Commission did not immediately respond to a Reuters request for comment.
Apple also lost a long-running court case with the EU in September, forcing the company to pay 13 billion euros (about Rs. 1,17,941 crore) in back taxes to Ireland.
Bloomberg first reported on Apple’s upcoming EU fine earlier on Tuesday.
Watchdogs are preparing punishment after Apple failed to allow app developers to steer users to cheaper deals and offers outside the App Store, Bloomberg reported, citing people familiar with the matter.
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