In March, the European Commission announced that it had launched an investigation into Apple’s new fee structure for alternative app stores. The reason for this investigation is that Apple charges a “Core Technology Fee” for users that developers refer to offers outside of the App Store, and charges an additional 3% fee if they use its payment processor. Imposing such fees on developers would violate the EU’s Digital Market Act (DMA).
$50 million daily fine to Apple from the EU: It is accused of not complying with the Digital Market Law
This is the first time a technology company has been accused on the basis of DMA. The DMA came into force earlier this year and aims to police the anti-competitive practices of tech giants.
According to sources familiar with the matter, the charges are expected to be announced within a few weeks. Apple could face fines of up to 5% of its global daily turnover, or about $50 million per day, for non-compliance.
Apple’s new fee structure covers developer fees for alternative app stores. Developers have to pay a “Core Technology Fee” to Apple when they refer sales outside the App Store.
Additionally, an additional 3% fee must be paid when using Apple’s payment processor. These practices may be found contrary to the EU’s Digital Market Law, which aims to protect competition and ensure the fair functioning of the market.
The European Union will not show mercy to Apple and Meta! Is it banned?
The European Union is preparing to fine Apple and Meta under the DMA law. Major sanctions are on the way for two companies.
Yes, Apple risks facing fines of up to $50 million per day, but this is not a definitive outcome. The company may take steps to correct its practices after the European Commission releases its preliminary findings.
These fixes could allow Apple to avoid a fine. If Apple were subject to such regulation, it could set a precedent for other large technology companies and make digital markets more competitive.
It is eagerly awaited how Apple will respond to the European Commission’s accusations under the Digital Market Act. The company may seek to achieve regulatory compliance by creating a fairer fee structure for app developers and users.