🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Apple set to face fine under EU's landmark Digital Markets Act, sources say

Published 11/05/2024, 03:53 PM
Updated 11/05/2024, 04:51 PM
© Reuters. FILE PHOTO: Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, U.S., August 1, 2018.  REUTERS/Lucas Jackson/File Photo
AAPL
-

By Foo Yun Chee

(Reuters) -Apple is set to be fined by the European Union's antitrust regulators under the bloc's landmark rules aimed at reining in the power of Big Tech, making it the first company to be sanctioned, sources with direct knowledge of the matter said on Tuesday.

The regulators charged in June that the iPhone maker had breached the bloc's tech rules. The charge against Apple (NASDAQ:AAPL) was the first by the Commission under its Digital Markets Act (DMA). 

The fine is likely to come this month although the timing could still change, the sources said.

The fine would add to Apple's mounting antitrust troubles, as EU regulators attempt to level the playing field for smaller firms.

This comes just months after Brussels fined Apple 1.84 billion euros ($2.01 billion) in March for thwarting competition from music streaming rivals via restrictions on its App Store - Apple's first ever penalty for breaching EU rules.

Apple also faces an investigation into new fees imposed on app developers. DMA violations could result in a fine of as much as 10% of a company's global annual turnover. 

The Digital Markets Act (DMA), which came into force earlier this year, requires Apple to allow users to set the default web browser of their choice on iPads, permit alternative app stores on its operating system and allow headphones and smart pens to access iPad OS features.

Apple declined to comment. The European Commission did not immediately respond to a Reuters request for comment.

Apple also lost a long-running court battle with the EU in September, resulting in the company being forced to pay 13 billion euros in back taxes to Ireland.

Bloomberg first reported on Apple's imminent EU fine earlier on Tuesday.

© Reuters. FILE PHOTO: Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, U.S., August 1, 2018.  REUTERS/Lucas Jackson/File Photo

Watchdogs are readying the penalty after Apple failed to allow app developers to steer users to cheaper deals and offers outside of the App Store, Bloomberg reported, citing people familiar with the case.

($1 = 0.9153 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.