Tech giants risk new charges over App Store restrictions
Business Business:Apple Inc. risks facing another chargesheet from the European Union’s (EU) antitrust watchdogs after it was fined $579 million earlier this year for alleged violations of a new digital law.
EU officials are preparing to give the company an ultimatum to allow developers to inform customers about cheaper deals away from the App Store, according to sources known to Bloomberg. The deadline expires on June 26, 2025.
Apple in deep trouble
If the iPhone maker fails to comply with the warning, it could face new fines under the bloc’s Digital Markets Act that could be as high as 5% of average daily worldwide revenue per day of noncompliance, Bloomberg reported.
A European Commission spokesman told Bloomberg it would not disclose next steps before the deadline for Apple to submit proposals expires. The spokesperson said regulators have enough regulatory powers to take action if Apple continues to violate its obligations under the DMA.
How can the tech giant avoid another fine? Apple could avoid legal action if it manages to assuage the commission’s fears by making a substantial offer to fix the alleged violations, Bloomberg reported.
Apple was fined once on April 23, the same day Meta Platforms Inc was fined $231 million for its “pay or consent” ad-free service on Instagram and Facebook. Both US tech giants were accused of violating strict DMA rules, which set a series of do’s and don’ts for the world’s largest technology firms, Bloomberg said.
Apple complains of bloc’s constantly changing rules
An Apple spokesperson told Bloomberg that EU regulators keep changing the rules under DMA compliance, making it impossible to comply with their operating decision.
EU regulators face criticism from Apple
Following Apple’s fine in April, the California-based firm accused the bloc’s regulators of discriminating against the company and forcing it to give away its technology for free, Bloomberg reported.
The company was hit with a €1.8 billion EU fine last year for shutting out music-streaming rivals on the iPhone, Bloomberg reported.
Over the years, the EU has levied costly penalties against a variety of firms, including a more than $8 billion fine against Alphabet Inc.’s Google and a separate order for Apple to pay Ireland $15 billion in back taxes.
Under its abuse of dominance rules, it has also imposed changes to Amazon.com Inc.’s marketplace platform and Apple’s tap-and-go chip, as well as investigating Microsoft Corp.’s video conference software, Teams, Bloomberg reported.
