Apple is on track to become the first company fined under the European Union’s Digital Markets Act (DMA), according to Bloomberg. Insider sources reveal that the EU Commission plans to impose this penalty due to Apple’s “anti-steering” practices, which were found to limit competition on the App Store.
This development comes after a previous €1.84 billion (around $2 billion) fine imposed on Apple by the EU in March. That penalty followed an investigation prompted by a complaint from Spotify. The Commission determined that Apple’s policies restricted developers from directing users to purchase options outside of the App Store at lower prices—a practice the DMA now prohibits.
The exact amount Apple will face in this new fine remains uncertain, but the DMA allows for fines as high as 10 percent of a company’s annual global revenue, or up to 20 percent for repeated violations. Based on Apple’s revenue from last year, an initial penalty under these guidelines could reach up to $38 billion. The Commission may reveal the fine as soon as this month, coinciding with the departure of EU competition chief Margrethe Vestager, according to Bloomberg.
In addition to this latest DMA-related fine, Apple is also under scrutiny for possibly obstructing alternative app stores within the EU. In a related case from September, the EU successfully upheld a ruling that requires Apple to pay €13 billion (about $14.4 billion) in back taxes. CEO Tim Cook reportedly went so far as to call former President Donald Trump to discuss the company’s accumulating fines.
This evolving situation reflects Apple’s ongoing tensions with EU regulators, who are increasingly focused on ensuring fair competition in the digital marketplace, even if that means challenging the practices of some of the world’s largest tech companies.