Apple risks heavy EU sanctions for non-compliance with DMA

Apple risks heavy EU sanctions for non-compliance with DMA
Apple risks heavy EU sanctions for non-compliance with DMA

Since the entry into force of the Digital Markets Act (DMA) in March 2024, tech giants must respect new rules on the Old Continent. The European Commission, after several months of investigation, is considering severe sanctions against Apple, accused of not complying.

Investigation and preliminary findings

In March, the European Commission launched an investigation into the practices of Apple, Alphabet and Meta, to verify their compliance with the DMA. According to Financial Times, the initial findings of this investigation indicate that Apple continues to impose restrictions contrary to the new regulations. Brussels would, however, grant Apple a short period of time to adjust its practices before imposing definitive sanctions.

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The main criticism leveled at Apple concerns the limitations it imposes on application developers. These restrictions make it difficult for developers to communicate with their users about alternative commercial offerings. For example, developers cannot notify users of the availability of cheaper subscriptions or content outside of the App Store, keeping prices high for consumers due to the “Apple tax” on purchases. integrated.

Another controversial subject is the implementation of Core Technology Fees (CTF), additional fees, of €0.50 per installation beyond the first million, even for free applications. Although Apple has granted an exemption to certain developers, the European Commission reportedly considers these measures insufficient to comply with the DMA.

Apple risks big

If Apple does not comply with EU requirements, it could fine it up to 10% of its annual global turnover, or potentially tens of billions of euros. In addition, the Commission could impose daily penalties equivalent to 5% of Apple’s global daily turnover, which could represent astronomical sums and seriously impact its financial results.

For the moment, Apple has not yet officially reacted to the findings of the investigation. However, the firm has already relaxed some of its conditions in order to comply with the DMA and could continue to do so to avoid sanctions. The European Commission, for its part, seems determined to enforce the new rules and could announce final decisions in the coming weeks.

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