European Commission Plans to Charge Apple for Violating Digital Markets Act, Possible Fines of Up to 5% of Daily Revenue
ICARO Media Group
In a recent development, the European Commission has announced its intention to charge Apple for allegedly violating the Digital Markets Act by not complying with obligations related to allowing app developers to direct users to offers outside of the App Store without additional fees. The charges are expected to be formally announced by the European Commission in the coming weeks.
According to sources familiar with the matter, the EU's preliminary findings suggest that the European Commission is specifically taking issue with Apple's Core Technology Fee. However, the exact charges that Apple may face are yet to be clarified. If found guilty, Apple could face non-compliance fines of up to 5% of its average daily worldwide revenue, which currently stands at just over $1 billion.
It is important to note that the EU's findings are still in the preliminary stage, giving Apple a window of opportunity to make the necessary changes on its iOS system before the charges are officially laid by regulators. Apple had already made significant changes to the App Store, Apple Pay, Safari, and more on the iPhone earlier this year as part of iOS 17.4. These changes included allowing alternative app marketplaces, introducing a default web browser selection screen in Safari, and permitting third-party mobile wallet apps to access the iPhone's NFC chip for contactless payments.
Meanwhile, in other Apple news, the tech giant recently unveiled iOS 18 during the Worldwide Developers Conference (WWDC) 2024. This latest update brings new customization features, a redesigned Photos app, and other enhancements to iPhone users. However, it is worth mentioning that some older iPhone models will not be compatible with iOS 18, as Apple continues to prioritize newer devices with its AI features.
As the charges against Apple loom on the horizon, the technology giant will have to navigate the regulatory landscape to ensure compliance with the Digital Markets Act. With the potential for significant fines, Apple will undoubtedly be keen to address any concerns raised by the European Commission. As the situation continues to develop, it remains to be seen how Apple will respond and what implications this may have for the App Store and app developers within the European Union.