Apple faces fine in the billions: EU investigates alleged violations of Digital Markets Act

As Margrethe Vestager, European Commissioner for Competition, toldCNBC,the European Commission believes that Apple has violated the rules of the Digital Markets Act(DMA). This regulation is primarily intended to prevent large companies from abusing their market power. In response to the DMA, Apple has allowed developers to distribute iPhone apps via third-party app stores since March or even directly via its own website in the case of larger providers.

The EU Commissioner has not yet provided any specific details on the extent to which Apple has violated the provisions of the Digital Markets Act, as the investigation is still ongoing, but the results will be published as soon as possible. According to a report in theFinancial Times, the European Commission is planning to impose a provisional fine on Apple, which could amount to up to 5% of Apple's average daily global turnover. With a turnover of $383.29 billion in 2023, this would correspond to almost EUR 1 billion.

If Apple makes improvements, the company may still be able to avoid the fine, otherwise the amount can be raised to up to 10% of annual revenue. One of the most important points of criticism from the European Union is likely to be the so-calledCore Technology Fee,through which Apple charges fees for the distribution of an app, even if it is downloaded via an alternative app store. In addition, Apple continues to prohibit developers fromadvertising cheaper offers in other stores within an app that is distributed in the App Store.

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