Apple Hit with 2 Billion Dollar Fine

Apple Breaking the Rules AGAIN

Apple is the first corporation to be sued under the historic Digital Markets Act (DMA), which the European Union accused the tech giant of breaking on Monday. If found guilty, Apple faces a hefty punishment.

 

The European Commission, the EU’s competition and technology watchdog, revealed the preliminary results of an investigation it opened against Apple in March. The investigation found that the App Store violates the DMA because it denies app developers the ability to “freely steer” users to offerings outside the App Store.

 

According to the commission, it has also started a second inquiry to see whether Apple’s new contractual obligations for outside app developers are in violation of the DMA.

 

The fundamental technology price, the several steps users must take to download and install other app stores on iPhones, and the prerequisites developers must meet in order to provide alternate app stores or distribute programs straight from the web to iPhone users are all under question.

When Apple implemented the new costs in the EU in March, “Fortnite” creator Epic Games and others took issue. The new fees include a core technology charge for large app developers, even if they do not utilize any of Apple’s payment systems.

 

The new tagline for Apple ought to be ‘act different.’ In a statement, Thierry Breton, the internal market commissioner, said, “Today we take additional steps to ensure Apple complies with the DMA rules.” “We feel there is a violation of the DMA in the AppStore policies that prevent software creators from having open communication with their own consumers. In addition, a new lawsuit against Apple’s revised IOS commercial conditions is being launched.”

 

Although the corporation is “confident” that its present method conforms, Apple will have time to modify its business activities under the DMA, as the commission has until March of next year to deliver a final ruling. Should Apple be found in violation of the DMA, the company might be fined up to tens of millions of dollars, or 10% of its yearly worldwide revenue.

 

By leveling the playing field so that smaller competitors may compete with Big Tech companies, the DMA seeks to increase competition in the digital economy. The EU declared antitrust probes against Apple, Facebook parent Meta, Google parent Alphabet, and Apple a few weeks after it went into force on March 7.

 

 

The European Union (EU) fined Apple about $2 billion for antitrust violations earlier this year, citing the company’s prohibition on music streaming app developers properly notifying iOS consumers about other, less expensive music subscription services. Apple is contesting the penalty.