Apple may face its first DMA fine for non-compliance with the Digital Markets Act. The App Store’s policies are said to be inconsistent with the legislation, according to the EU.
There is a good chance that Apple will become the first company to be effectively fined for violating the European Union’s Digital Markets Act (DMA). According to anonymous sources to Bloomberg, the European Commission is preparing a fine. This is because Apple’s App Store policy would not be in line with so-called steering rules within the DMA. Nothing is known about the amount of the fine, but it could amount to ten percent of Apple’s annual global sales.
App Store policies
The alleged fine on the table for Apple relates to undermining alternative iOS app stores. This is because Apple’s App Store policy allegedly violates so-called steering rules from the DMA. Those tell that the ecosystem of gatekeepers, to which Apple belongs, must be sufficiently open. The EU believes Apple is undermining alternative app stores.
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A man forewarned is worth two. Apple was already taken to task in June around its anti-steering policy in the App Store. Back then, the European Commission was already warning of a possible fine. Apple tried to comply with the DMA’s rules, and allegedly had plans to allow European iPhone users to freely choose system apps.
Fine
As to the exact amount of this upcoming fine, nothing is yet known. However, the DMA’s rules do state that fines can be up to ten percent of annual worldwide sales, or 20 percent for repeated infringement. So in Apple’s case, this could amount to $38 billion, based on last year’s figures.
According to sources, the fine could still be imposed before European Commissioner Margrethe Vestager, leaves office. According to the sources, it could also be postponed to “later this year.