Apple Risks Fresh EU Charge Sheet Over App Store Curbs

Apple is edging toward another charge sheet from European Union antitrust watchdogs unless it quickly fixes alleged violations of a new digital law that led to a EUR 500 million ($579 million) fine earlier this year. 

With the clock running down on a deadline that elapses on June 26, officials are prepared to hand the iPhone maker an ultimatum to allow developers to inform customers of cheaper deals away from the App Store, according to people familiar with the matter who spoke on condition of anonymity.

If unheeded, that step would then pave the way for new fines under the bloc’s Digital Markets Act, which can be as high as five percent of average daily worldwide revenue per day of non-compliance. The people added that Apple could still evade a future escalation if it manages to appease the commission’s fears with an imminent proposal that is enough to fix the alleged violations.

Apple was fined on April 23 — the same day Meta Platforms was slapped with a €200 million (roughly Rs. 1,993 crore) penalty for its “pay or consent” ad-free service on Instagram and Facebook. Both US tech giants were judged to have breached strict DMA rules that lay out a series of dos and don’ts for the world’s largest technology firms.

A spokesperson for Apple said that EU regulators keep changing the goalposts for what DMA compliance is, making it impossible to comply with their steering decision. The firm added that it is spending hundreds of thousands of hours working to comply with the bloc’s ever-changing regulation.

A European Commission spokesperson said it wouldn’t speculate on the next steps while Apple still has time to submit a proposal. It added that regulators have ample regulatory powers at their disposal if Apple continues to be in breach of its obligations under the DMA.

On the heels of Apple’s April fine, the Cupertino, California-based firm responded fiercely, accusing the bloc’s regulators of discriminating against the company and forcing it to give away its technology for free. Just last year, the company was hit with a EUR 1.8 billion (roughly Rs. 17,942 crore) EU fine for shutting out music-streaming rivals on the iPhone. 

Over recent years the EU has made costly penalties against firms, including more than $8 billion in fines against Alphabet’s Google and a separate order for Apple to pay Ireland back taxes of EUR 13 billion (roughly Rs. 1,29,595 crore). 

Under its abuse-of-dominance rules, it has also forced changes out of Amazon.com’s marketplace platform and Apple’s tap-and-go chip, while also investigating Microsoft Corp. video conference software, Teams.

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