Bloomberg reports that Apple will soon be the first company to be fined for violating the European Union’s Digital Markets Act (DMA). Sources told the paper that the commission is preparing to impose penalties after finding that Apple’s “anti-steering” practices are hurting competition in the App Store.
The EU already fined Apple 1.84 billion euros (about US$2 billion) in March. After investigating a complaint from Spotify, the European Commission ruled in March that Apple restricted developers’ ability to introduce cheaper deals outside the App Store to users, an illegal act under the Digital Markets Act.
It remains to be seen how much the EU will fine Apple, but DMA rules state that companies can be fined up to 10% of their annual global turnover, and up to 20% for repeat violations. The EU’s initial fine could be up to $38 billion, based on Apple’s sales last year. Bloomberg reports that the Commission could announce the fine as early as this month before Competition Commissioner Margrethe Vestager steps down.
The Verge reached out to Apple for comment but did not immediately receive a response.
Apple is also facing an investigation into whether it is infringing on alternative app stores in the EU. In September, the EU won a fight to force Apple to pay 13 billion euros (about $14.4 billion) in unpaid taxes. Apple CEO Tim Cook also reportedly called former President Donald Trump to complain about fines imposed on his company.
