Apple Faces Massive EU Fine: EU Investigation Finds Apple Non-compliant with DMA Regulations

The EU’s latest Digital Markets Act (DMA) came into effect in the spring of 2024, designating several major tech companies, including Apple, as gatekeepers, subjecting some of their products to stricter EU regulation.

For instance, under the DMA, Apple was compelled to open up its App Store, browser engine, and alternative payment systems within the EU. Failure to do so would constitute a violation of the DMA's requirements.

However, the EU's investigation still found Apple in violation. In June 2024, the EU discovered that Apple had established anti-steering rules, prohibiting developers from enticing users to make payments through external options within apps.

By August 2024, Apple amended its anti-steering rules to comply with EU regulatory demands, allowing EU developers to direct users to make payments outside of the Apple App Store. Furthermore, developers were permitted to publish discounts without opting into Apple's new commercial terms and payment processing fees, though Apple still required developers to report transactions made outside of the App Store and pay related service fees.

It remains unclear what specific violations the EU will fine Apple for, and how large the fine will be. According to the DMA, the EU could fine up to 10% of Apple's global revenue for the fiscal year 2023.

Previously, Apple was fined $2 billion by the EU for anti-competitive practices against third-party music services. Despite likely appeals from Apple, such anti-competitive behaviors ultimately face severe EU penalties.