Apple receives first penalty under EU digital markets act

With this first fine, the EU aims to set a precedent, signaling its commitment to enforcing the DMA. Under the DMA, companies like Apple are required to follow strict rules that promote openness and fair access for third-party developers.

In Short

• Apple faces first penalty by EU digital market act
• The penalty follows investigations into the company's alleged anti-competitive practices
• EU can fine large tech companies up to 10 per cent of their global revenue

Apple has been hit with its first penalty under the European Union’s Digital Markets Act (DMA), marking a significant development in the EU’s approach to regulating large tech companies. This new legislation targets gatekeeper firms—major digital platforms that hold dominant positions in key areas such as online search, social media, and app stores. The DMA is designed to ensure fair competition and prevent tech giants from using their influence to stifle smaller competitors.

The penalty for Apple follows investigations into the company's alleged anti-competitive practices within its app ecosystem. Under the DMA, companies like Apple are required to follow strict rules that promote openness and fair access for third-party developers, reported Bloomberg. Apple’s app store policies, which have been previously criticised for being restrictive, are at the centre of the investigation.

With this first fine, the EU aims to set a precedent, signaling its commitment to enforcing the DMA. Other tech giants may also face scrutiny as the EU seeks to create a level playing field in the digital space. This penalty highlights the growing regulatory pressure on major tech companies to adhere to new standards that prioritise consumer choice and market competition.

Apple faces another potential fine under the EU's Digital Markets Act (DMA), only months after a hefty €1.8 billion ($2 billion) penalty for anti-competitive practices related to Spotify. This move follows a June warning to Apple, urging it to allow developers more freedom to guide users outside its App Store. Unlike traditional antitrust laws, the DMA is crafted to prevent anti-competitive actions before they harm market fairness. Under its rules, the EU can fine large tech companies up to 10 per cent of their global revenue—or 20 per cent for repeated offenses—along with possible daily penalties.

EU competition chief Margrethe Vestager has challenged Apple on multiple fronts, including a case over tax advantages in Ireland and rules limiting Spotify's ability to direct users to alternative payment options outside the App Store. Recently, regulators also compelled Apple to allow third-party payment providers access to the iPhone's payment chip, opening up competition with Apple Pay.

This comes after Indonesia halted the sales of the iPhone 16 series in the country. The country has also declared that the use of the phone is now illegal. Indonesia’s industry minister has also warned people in the country from buying the devices from abroad. The reason behind the ban is “unfulfilled investment commitment” from Apple. He urged the public to report such devices, reinforcing the government’s stance on adhering to local investment requirements. This warning highlights the seriousness of the certification gap and the Indonesian government's commitment to ensuring compliance with domestic regulations.