Apple Risks $38.3bn Fine For Allegedly Breaching EU’s Digital Competition Rules

The European Union regulators have accused Apple of breaking new digital competition rules by imposing restrictive rules on its App Store marketplace, preventing app developers from freely directing consumers to cheaper services.

According to the European Commission’s preliminary findings, Apple’s App Store rules violate the EU Digital Markets Act (DMA) provisions by limiting app developers’ ability to freely steer consumers to other channels for offers and content.

EU’s executive arm in a statement on Monday said that Apple could be slammed with a fine of 10% of its $383 billion annual global revenue if found guilty.

It also allowed Apple to respond to the findings, which will be assessed before a final decision is made by March 2025.

In addition, the EU has launched a new investigation into Apple’s compliance with the DMA, focusing on the company’s recently introduced contractual terms for app developers.

This is the first time the commission has levelled accusations against a company for violating its groundbreaking Digital Markets Act.

The DMA, implemented in March, encompasses a comprehensive range of competition regulations designed to limit the influence of major technology companies.

Apple Inc. said over the past several months, it “has made several changes to comply with the DMA in response to feedback from developers and the European Commission.”

“We are confident our plan complies with the law,” the company said.