Apple to face first EU fine under new digital antitrust rules

The penalty, under the Digital Markets Act, is related to the iPhone maker’s App Store

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Apple is set to face the first fine under EU’s tough Digital Markets Act. Photo: AFP

Published: 10:07am, 6 Nov 2024

Apple is set to face the first-ever fine under the European Union’s new digital antitrust rules for Big Tech, representing an escalation of a clash with regulators over the dominance of its hugely profitable App Store.

Watchdogs are readying the penalty after the iPhone maker failed to allow app developers to steer users to cheaper deals and offers outside the App Store, according to people familiar with the case, who spoke on condition of anonymity.

The penalty, under the tough new Digital Markets Act (DMA), is set to come just months after Cupertino, California-based Apple was hit with a €1.8 billion (US$2 billion) fine for similar abuses under the bloc’s traditional competition rules – involving music streaming service Spotify.

The European Commission could still unleash the fine before current EU competition commissioner Margrethe Vestager is due to leave office later this month, according to the people.

EU competition commissioner Margrethe Vestager. Photo: EPA-EFE

But there was a chance it could be pushed back to later this year, they said. The fine could also be accompanied by periodic penalty payments, levied on Apple until it complies with the law, said the people, adding that the decision was still being drafted.