Apple is facing significant challenges with the European Union’s Digital Markets Act (DMA). In March, the European Commission launched an investigation into Apple’s new fee structure for alternative app stores. Apple charges a 3% fee for every in-app purchase and a €0.50 Core Technology Fee for each app loaded from third-party sources, which might violate the DMA.
Margrethe Vestager’s Comments
Last week, the European Commission fined Apple 5% of its global daily revenue for non-compliance with the DMA, amounting to roughly $50 million per day. This makes Apple the first tech company to be fined under the DMA. EU Competition Chief Margrethe Vestager told CNBC that Apple has significant compliance issues with the DMA.
Vestager noted that the European Commission does not believe Apple’s changes align with the DMA, and she expressed surprise at Apple’s level of non-compliance. She emphasized that Apple would not receive special treatment and that fines and necessary measures would be applied. The Commission could fine Apple over $1 billion once the investigation is completed.
Apple’s Situation
According to the Financial Times, the European Commission plans to charge Apple for not allowing developers to direct users to pay outside the App Store. In recent months, Spotify has faced similar issues with Apple, unable to direct users to its website for subscriptions, which suggests a DMA violation.
Apple’s new operating systems are still in beta, and there is time for the company to make DMA-compliant adjustments.
Conclusion
Apple’s compliance issues with the European Union could lead to substantial fines and regulatory pressure. How Apple will respond and whether it will make DMA-compliant changes remains to be seen.
What Do You Think?
Do you think Apple will make DMA-compliant adjustments, pay the fines, or withdraw from the European market? Share your thoughts in the comments below.
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