Apple May Encounter Substantial EU Penalties Due to Accusations of Monopolistic Conduct


It seems that Apple is about to make headlines as the first entity to receive a penalty under the European Union’s Digital Markets Act (DMA).

As per a recent [report](https://www.bloomberg.com/news/articles/2024-11-05/apple-to-face-first-eu-fine-under-bloc-s-digital-markets-act) from *Bloomberg*, the European Commission is gearing up to impose a fine on Apple that may reach up to 10 percent of the company’s total annual global revenue.

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The penalty would be applied due to Apple’s inability to permit third-party app developers to advertise more affordable options for their products outside the App Store.

In June, [Mashable](https://mashable.com/article/apple-breach-dma) noted that the European Commission was looking into Apple’s potential breach of the DMA, which was enacted in November 2022.

Earlier this year, Apple faced a [fine](https://www.bloomberg.com/news/articles/2024-03-04/apple-hit-with-1-8-billion-eu-fine-over-abusive-app-store-rules) of $2 billion for hindering Spotify from promoting cheaper alternatives outside its app on the App Store. However, this penalty was applied under traditional EU antitrust laws.

The DMA was established to foster competition in markets primarily controlled by major tech firms. It requires that large tech corporations, deemed gatekeepers, must permit third-party organizations to compete on their main platforms.

The DMA has already [compelled](https://mashable.com/article/apple-dma-eu-connectivity-interoperability-proceedings) Apple to make substantial adjustments to its fundamental platform services, including the App Store, in the EU. Nonetheless, the European Commission continues to [investigate](https://mashable.com/article/apple-dma-eu-connectivity-interoperability-proceedings) Apple for non-compliance in additional aspects of its platform operations. This impending fine may just be the first of numerous penalties that Apple could encounter under the DMA.