- Apple is reportedly soon to be hit by the Digital Markets Act’s first penalty
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The European Union is ready to penalise Apple for alleged anticompetitive practices by dealing out the first ever fine for breaching the Digital Markets Act.
As reported by Bloomberg, people “familiar with the case” said the fine is set to come after Apple failed to give developers the power to direct users away from its App Store for “cheaper deals and offers”.
The fine could include “periodic penalty payments” until Apple submits to the new law and changes its policies.
The EU may fine Apple as soon as this month, potentially before EU competition commissioner Margrethe Vestager leaves office later in November. Sources noted, however, that the fine could be pushed back to December.
The DMA strikes
Apple was warned this June that it must offer developers a suitable, effective way to lead users from the App Store – giving users more ability to choose where they spend.
In mobile games, an increasing number of titles are offering better deals on their web shops, hoping to dodge Apple’s fees. But this still requires publishers to find creative ways to get spending players to their own stores outside of their games.
In August, Apple revamped its business terms in the EU to allow App Store link-outs and out-of-store promotions, allowing developers to communicate such deals.
However, this comes with a set of fees including a 5% cut of all sales of digital goods an services from a customer on any platform for a 12-month period, as well as an additional 10% ‘store services fee’.
A potential incoming fine could suggest that Apple’s changes have not gone far enough for antitrust regulators.
For not complying, Apple could be fined up to 10% of global annual sales under the Digital Markets Act, or 20% in the case of repeat infringements. Alternatively, the law can demand periodic fines of up to 5% of daily average revenue.
Back in July, Apple did comply with antitrust rules regarding NFC chips after the European Commission deemed Apple Pay to have a monopoly, choosing compliance over paying a penalty.
