“Another Big Fine Looming for Apple as EU Raises Concerns Over Compliance with New Tech Rules”
European Commissioner for Competition Margrethe Vestager has raised serious red flags about Apple's adherence to the European Union's new Digital Markets Act, or DMA. In remarks to CNBC, Vestager stated the EU has uncovered “very serious issues” in regards to the iPhone maker potentially violating key provisions of the landmark legislation.
Signed into law earlier this year, the DMA aims to curb the dominance of large digital companies through a list of mandated behaviors. Some of its rules require such firms to allow users to easily install third-party apps or app stores, remove pre-installed software, and give more choice over data collection and targeted ads.
Vestager expressed surprise at the “suspicions of Apple being non-compliant” with the law's requirements. If proven true after investigation, the consequences could be severe. Fines under the DMA can reach as high as 10% of a company's global annual revenue. For a tech titan the size of Apple, that figure would likely total billions of dollars.
Independent of these DMA probes, the EU last fined Apple $1.8 billion in 2021 over anti-competitive behavior within its app marketplace. Regulators argued Apple blocked alternative payment options and subscription offers outside the App Store.
The latest inquiries center on concerns Apple has not sufficiently enabled user choice on iOS. This includes uninstalling default apps, changing default browser and search engine settings, and conveying app steering options outside the walled garden. A failure to remedy issues noted by the EU could force structural changes to Apple's business model across Europe.
As more governments implement anti-monopoly rules specific to big tech, Apple faces growing compliance requirements worldwide. Only time will tell if these regulatory pressures finally force meaningful reforms to its control over the iOS ecosystem. But for now, the EU is making clear another sizable sanction may be coming soon from Brussels.
