Apple may receive first-ever EU fine for violating App Store rules

Apple could become the first company to be fined under the European Union’s new digital antitrust rules for big tech corporations. As reported by The Verge, the European Commission is preparing to impose a fine on Apple for using practices that, according to the regulator, restrict competition in the App Store.

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Earlier in March 2024, the European Commission had already fined Apple €1.84 billion (about $2 billion) after an investigation into a complaint from the music streaming service Spotify. The Commission concluded that Apple prevented app developers from redirecting users to cheaper payment options outside the App Store, which was unacceptable under the Digital Markets Act (DMA).

The size of the new fine is not yet known, but the DMA provides for a penalty of up to 10% of the company’s annual global turnover for the first violation and up to 20% for repeated violations. Given Apple’s revenues last year, the fine could reach $38 billion. The European Commission is expected to announce its decision this month, even before Competition Commissioner Margrethe Vestager leaves her post.

Apple is also under investigation for allegedly obstructing the development of alternative app stores in the EU. In addition, in September 2024, the European Union won a case in which Apple is obliged to pay €13 billion ($14.4 billion) in unpaid taxes. Apple CEO Tim Cook allegedly even approached Donald Trump with complaints about fines imposed on the company. At this time, Apple has not provided The Verge with any official comments regarding the upcoming fine.