The EU is ready to fine Apple for non-compliance with the Digital Markets Act

The European Union is preparing to fine Apple for failing to comply with the Digital Markets Act (DMA), according to a new report by the Financial Times. This will be the first time a company has been fined under the DMA, and an announcement is expected in the coming weeks.

Apple first outlined its plans for DMA compliance in January and implemented them with the release of iOS 17.4 in March. These changes included a significant reduction in App Store fees. Since then, Apple has revised its policy on third-party app stores in the EU, introduced a Core Technology Fee for developers, and allowed users to install apps directly from developer sites.

Despite these efforts, the European Commission remains dissatisfied. The Commission argues that Apple has not fulfilled its obligation to allow app developers to redirect users to offers outside the App Store without charging a fee. This provision is a key aspect of the DMA’s requirements for fair competition and market openness.

If the European Commission proceeds with the penalty, Apple could be fined up to 5% of its average daily global turnover, which could exceed $1 billion.

The Financial Times article, which cites three sources familiar with the situation, notes that the European Commission’s conclusions are still preliminary. Apple may still be able to make additional changes to its practices to avoid a fine.