EU is reportedly going to fine Apple over failure to comply with the Digital Markets Act
Reports say that the European Union is about to issue Apple with the first-ever fine of a company under its Digital Markets Act, and specifically over anti-steering measures in the App Store.
EU flags in Brussels
The EU has already fined Apple $2 billion over its alleged blocking of rivals to Apple Music from promoting their potentially cheaper alternatives. Subsequently, it was reported that the European Union was assessing whether Apple has now complied with the ruling.
According to the Financial Times, the EU has concluded that Apple has not, or at least that it hasn't complied sufficiently. Three unspecified sources said to have close knowledge of the investigation, say that the EU is about to issue a new fine against Apple.
The investigation was conducted specifically under the powers granted by the Digital Markets Act. This would mean that Apple is the first company to be fined under that law -- although reportedly both Meta and Google are still under investigation.
Allegedly, the conclusion that Apple has not complied with its obligations, is provisional. The EU is said to believe that Apple has failed to allow developers to promote their alternative offerings, and without imposing fees.
Apple will be able to take action to correct its practices, and the EU officials could then reconsider their decision before imposing a fine. The sources also say that the announcement of the fine could take place in the next few weeks, but the schedule is not set yet.
Should the EU choose to charge Apple over breaking the Digital Markets Act, the fine could be substantial. The law allows for daily penalties of up to 5% of its average daily worldwide turnover.
At present, that would mean a potential fine of up to $1 billion per day.
Craig Federighi speaking against third-party app stores at Web Summit in 2021 (Credit: Web Summit)
Apple has not commented on the report and isn't expected to until, or unless, the EU announces the charge. However, the company previously issued a statement to AppleInsider regarding its compliance with the law.
"We're confident our plan complies with the DMA, and we'll continue to constructively engage with the European Commission as they conduct their investigations," said Apple. "Teams across Apple have created a wide range of new developer capabilities, features, and tools to comply with the regulation."
"At the same time, we've introduced protections to help reduce new risks to the privacy, quality, and security of our EU users' experience," continued the company. "Throughout, we've demonstrated flexibility and responsiveness to the European Commission and developers, listening and incorporating their feedback."
Also throughout the process of working to comply with the Digital Markets Act, Apple has stressed that being forced to allow alternative app stores is a security risk. Apple's software engineering chief, Craig Federighi, even described sideloading apps outside of the App Store as being "a gold rush for the malware industry."
The Digital Markets Act is the EU's attempt to control against abuses of market dominance by Big Tech firms. It is the first such act to be passed into law, but other countries are attempting to mimic it.
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Comments
Shouldn't it be: "in my house, my rules"?
Why should the US government be intervening in what the EU does?
The rules are there. Apple thinks it's complying. The EU thinks it isn't.
Wait for action and then respond. Apple will appeal. Let the process follow its normal course.
You’re not independent from the EU’s legislation which is why you have to abide by the EU’s rules when you travel there, why our manufacturing has to comply with it’s legislation if the UK wants to sell there, and so on.
How are those trade deals coming along, BTW?
Considering that the United States is looking at similar regulation, maybe Apple should just leave that market, as well? And Japan? And Australia?
1. EU: "Hey, follow our laws!"
2. Apple: "Uh…okay. Here, we're following your law, but we're enacting levies to make sure it won't make a difference."
3. EU: "We see what you did there. You know exactly that's not what we meant. Stop it."
4. Some dude on the internet: "The EU acts all high and mighty"
For all of you that want to navigate the GMA, see above...
This is not a problem with EU. The US states didn't gain independence by being clones of European nations. There are differences and it is not a problem.
Apple is capable of selling to China and India. It isn't even hard to sell to EU without getting fined.
Other US companies do this every day. Ford, IBM, McDonald's, Microsoft, Coca Cola,...
If you run a "Double Irish with a Dutch sandwich" for tax evasion then EU will hit you hard to protect the market.
If you don't allow users to repair, act as a gatekeeper, insist on a proprietary charging connector after having promised switching to USB for 15 years... then EU will hit you.
The problem is Apple.
IBM avoided a heavy EU antitrust fine for abusing their position in supercomputing by making major concessions and offering to redress past imbalances.
McDonald's was severely fined in at least one EU nation for tax avoidance.
Microsoft… hahahhahahahaha… oh boy. Just Google "Microsoft vs. EU".
Coca-Cola has had all manner of antitrust probes and fines and settlements in the EU, almost continuously over the past twenty years.
I hope Apple are forced to make some substantive changes.