Apple is preparing to face its first-ever fine under the European Union’s Digital Markets Act (DMA), which could be imposed as early as the end of this month. The news, reported by Bloomberg, follows a previous report by the Financial Times in June, which indicated a possible fine of up to 5% of Apple’s average daily global revenue, equivalent to more than $1 billion. The European Commission had already ruled in June that Apple was in breach of the DMA, specifically by not allowing app developers to direct users to cheaper offers and purchases outside the App Store. Anonymous sources familiar with the matter, cited by Bloomberg, say the watchdog is preparing the fine.
Despite the upcoming departure of European Competition Commissioner Margrethe Vestager, the fine is likely to be imposed before she takes office. However, the final decision has not yet been made and could be postponed until later this year. In addition to the fine, Apple could also face recurring fines until it is fully compliant with the regulation. Apple unveiled its DMA compliance plans in January and implemented them with the iPhone 17.4 in March, introducing significant changes such as reducing App Store fees, revising the requirements for app industries, and changing the fee structure for core technologies. In August, Apple announced further changes to browser choice, default apps, and the ability to delete apps in the EU. The iOS 18.2 beta includes additional changes in response to the DMA.
The European Commission has launched an investigation to determine whether the iPad meets interoperability standards. Apple says it is confident that the changes made are in line with the DMA and is committed to cooperating with the Commission during the investigation. However, it is still unclear whether the Commission will consider the efforts sufficient to address the already complex history between the tech giant and European regulators.
