Apple could be one of the first big tech companies to face charges under the European Union’s Digital Markets Act (DMA). The EU’s investigators are nearing a conclusion that Apple is violating certain terms of the DMA thanks to the App Store’s anti-steering provisions, reports the Financial Times.
Per the report, the European Commission is concerned that Apple has failed to implement certain changes to its anti-steering policies, which prevent App Store developers from adding links to their apps to process payments externally. The results of the investigation, which kicked off in March, and the charge against Apple could officially be put forward in the coming weeks.
However, the EU investigators’ findings are “preliminary” at this stage, which could allow Apple to rectify its contended App Store anti-steering policies. Other big tech companies could also be on the hook for fines, as the EU is also investigating Google over giving the Play Store an unfair advantage on its platforms and Meta for allegedly abusing personal data for advertising.
If Apple and the others are found guilty, the Digital Markets Act gives the EU powers to fine companies up to five percent of their average daily revenue, which could be as high as $1 billion in the case of the Cupertino company.
In addition to anti-steering policy investigations, the EU is also considering taking action against Apple over its Core Technology Fee (CTF), which charges developers half a euro over each app download over the first one million installs. Some small developers have complained that the CTF could quickly bankrupt them if their apps go viral, and Apple has promised some changes to the CTF’s structure.
Apple took its first steps to comply with the Digital Markets Act with iOS 17.4. The update introduces significant changes to the iPhone’s app ecosystem, including alternative app marketplaces and the ability to download apps directly from websites without the App Store. Changes imposed by the Digital Markets Act won’t stop there, as Apple plans to make it easier for iPhone users to switch to Android within the next year.
