Global: Apple to Be Fined in Landmark Case Under EU Digital Markets Act

Apple is set to face a fine from the European Union’s antitrust regulators, marking the first penalty issued under the EU’s new Digital Markets Act (DMA).

According to a recent Reuters report, the EU charged Apple in June for breaching tech regulations outlined by the DMA. Sources with direct knowledge of the matter revealed that the fine is expected to be announced later this month, though the exact timing could change. Under the DMA, companies found violating its terms can incur fines as high as 10% of their global annual turnover.

Enacted this year, the DMA targets monopolistic practices among “gatekeepers,” a designation that includes major tech firms like Apple. The law mandates these companies adhere to stricter measures designed to ensure fair competition, such as permitting app developers to bypass restrictive platform policies. One focus of the DMA involves Apple’s 30% commission on App Store sales, a longstanding point of conflict between Apple and the EU.

This impending fine comes on the heels of a similar penalty imposed less than a year ago. In March, the European Commission fined Apple €1.8 billion ($1.95 billion) for antitrust violations in the music streaming market. The Commission found that Apple had prevented app developers from informing iOS users about cheaper, alternative subscription services, like Spotify, in violation of EU competition laws.

Apple’s practices, which reportedly spanned nearly a decade, led to higher prices for consumers using iOS devices. As the Commission stated, “Apple’s conduct may have resulted in many iOS users paying significantly higher prices for music streaming subscriptions due to the high commission fee Apple charged developers, which was ultimately passed on to consumers.”

Apple is facing similar regulatory scrutiny in the United States. In March, the U.S. Department of Justice filed an antitrust suit against Apple, alleging that the company restricts competitors’ access to its software and hardware, complicating consumer options for switching devices. Apple has called for the case’s dismissal, arguing that it “bears no relation to reality.”