EU set to impose DMA fine against Apple over App Store

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EU set to impose DMA fine against Apple over App Store


In the coming weeks, the European Commission may impose the first fine against Apple based on the Digital Market Act (DMA). The Financial Times has reported this news quoting three unnamed people. This will be the first time that the Commission has resorted to such a fund based on DMA. Apart from Apple, Alphabet (Google) and Meta are currently being investigated for compliance with the rules.

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At Apple, the App Store in particular has been criticized. In particular, the EU demands that Apple should also make other offers from the App Store easily accessible. This affects, among other things, payment options and in-app purchases, which Apple has opposed for years.

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This is why iPhone apps are usually more expensive than their versions for other platforms, as Apple reserves a share of up to 30 percent of all transactions. According to the DMA, this is no longer allowed and Apple must provide external shopping options free of charge. However, the changes made so far to the App Store to comply with this, as well as the possibilities for alternative stores, do not go far enough for the EU.

If the Commission decides that Apple is not complying with the DMA or is only complying insufficiently – so-called “malicious compliance” – there is a risk of high fines. DEM According to a report in the Financial Times This could be up to five percent of its global sales per day. According to the paper, this is about one billion US dollars, so Apple would have to set aside $50 million every day just for the fine.

Some of Apple’s business model is also threatened in its domestic market. An antitrust lawsuit is currently underway in the United States by the Department of Justice, which seeks to achieve greater openness in the Apple ecosystem. There are five charges under which the App Store does not appear as an element. Above all, US regulators want to achieve better interoperability of Apple’s devices and services. Apple should also allow so-called “super apps”, which in turn enable purchases and services from third-party providers.

On the civil law side, there is also a years-long proceeding between game maker Epic Games against Apple, which in turn is focused on the App Store. Epic does not want to accept Apple’s previous commissions or the way the App Store points to external payment options after initial court rulings.


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