The European Commission (EC) released a preliminary ruling Monday (June 24) finding Apple violated the European Digital Markets Act (DMA).
The company was given a few months to review the investigation documents and file their written disputes before the commission's final ruling, scheduled for March 2025. If Apple's legal team could not reverse the ruling, it could face a fine of 10% of its global annual revenue, which could be estimated at $38.3 billion.
Apple May Be Fined
The commission's ruling claimed that the rules and fees of the big tech company's App Store restricted app developers from directing consumers to alternative purchasing channels.
Techspot reported that a second EC investigation on Apple could also lead to a repeat violation and a second fine of 20% of its revenue, or $76.6 billion.
With the ruling, Apple became the first tech company to be found guilty of violating the DMA, but Google and Meta are not far behind.
The Verge reported that Apple was previously fined €1.84 billion (around $2 billion) by the EU's antitrust regulators over its App Store's anti-steering practices in a case predating the DMA, which started in a 2020 lawsuit when Spotify filed an antitrust complaint against the Cupertino-based tech firm.
How Apple Violated DMA
The Digital Markets Act mandates that developers inform their customers about more affordable options and allow them to buy apps through such alternatives.
The commission argued that Apple's business terms were restricting this freedom.
While Apple permitted in-app links to external websites, it imposed restrictions that hindered developers from using the links to communicate and transact with their customers.
The EC also claimed that Apple was charging excessive fees, including a 27% commission on every purchase made within seven days after a user clicked a "link-out" from an app.
Apple's Response to Europe's DMA
In response, Apple stated that it has made changes to comply with the DMA, stressing that it remained confident that its plans would meet European legal requirements.
The company also highlighted that over 99% of its developers would pay similar or lesser fees under the new terms. It emphasized its ongoing commitment to engaging with regulators like the European Union.
MacDailyNews reported that similar issues with digital marketing led Apple to delay its Apple Intelligence AI tools and other features on the continent.
Join the Conversation