Apple is reportedly set to face charges within the European Union for alleged anticompetitive behavior in its App Store — in what would mark the primary time EU officials have gone after a Big Tech giant for violating a sweeping digital law.
The European Commission, the EU’s antitrust watchdog, has found that Apple just isn’t in compliance with the Digital Markets Act, which took effect in March and is aimed toward tech titans designated as the web’s “gatekeepers,” the Financial Times reported, citing sources acquainted with the matter.
Specifically, Apple violated the DMA’s provisions by charging app developers a fee so as to “steer” customers to make purchases outside the App Store — where the corporate takes a large cut of each sale. Critics have argued Apple’s fees are excessive and stifle competition.
A proper announcement of EU charges against Apple might be made inside weeks, the report said.
The sources said the European Commission’s findings are preliminary and that Apple could still avoid charges by altering its business practices to comply with the DMA.
The Post reached out to the European Commission for comment on the report.
Apple didn’t immediately return a request for comment.
The corporate’s shares, which hit an all-time high this week, fell lower than 1% Friday.
The iPhone maker could face fines of as much as 5% of its average day by day worldwide turnover — a bit greater than $1 billion per day — for violations of the law, in response to the FT.
The European Commission first announced in March that it was investigating Apple, in addition to Google, Meta and Amazon, for potential violations of the Digital Markets Act.
On the time, EU officials said their probe was examining whether Apple’s recent compliance plan for the DMA, including its practice of charging app developers a so-called “core technology fee” for access to the App Store, was “defeating the aim” of the law.
Officials are still weighing whether to pursue charges against other firms, the report said.
EU charges would mark one more regulatory headache for Apple.
In a separate motion in March, European Union regulators hit Apple with a whopping $2 billion antitrust effective for “abusing a dominant position” in music streaming through its App Store practices.
Apple is difficult the penalty.
Within the US, the Justice Department recently hit the corporate with a landmark antitrust suit alleging that it has engaged in anticompetitive behavior to make sure the dominance of its iPhone within the smartphone market.
