Apple has been penalised by the European Union under the newly implemented Digital Markets Act (DMA), it is the first time the EU has fined a company under this new regulation to limit monopolies among big tech firms. The penalty, which may be replicated to other tech companies, was arrived at after an investigation of Apple’s anti-competitive conduct in its app environment.
The DMA was adopted to increase competitive neutrality and prevent large platforms from dominating small competitors, allowing the EU to fine ‘gatekeeper’ companies – organisations that exercise significant control in such fields as search, social networks, and applications – up to 10 percent of their global turnover, Bloomberg reported. For multiple infringements of such provisions, this fine may be raised to 20 percent, and other daily penalties may also be imposed.
EU Goes After Apple’s App Store Practises
The focus of the EU’s investigation is Apple’s app store rules which have been described as rather unreasonably restrictive. Apple’s app store has faced criticism for reported unfair practices against third-party developers including a recent complaint by music streaming service Spotify. Before that, the EU asked Apple to provide developers more options for guiding users away from the App Store to avoid Apple’s 15-30 percent cut. The EU’s DMA is not the same as the typical antitrust laws as it is preventive, seeking to protect fair market conditions before any harm to competition happens.
Earlier, Apple was fined €1.8 billion ($2 billion) over practices linked to Spotify, which shows that the EU has recently stepped up efforts to promote fair and transparent digital markets. The EU approach aims at levelling the playing field, respecting consumers’ choice and allowing new entrants to become part of the complex ecosystem.
EU’s Ongoing Scrutiny of Apple and Tech Giants
Apple has also been in the spotlight of the EU’s competition chief Margrethe Vestager, who has quizzed Apple on various issues, including one involving tax benefits in Ireland. Earlier this year, regulators demanded that Apple allow third-party payment processors to access the iPhone’s payment token, adding competition to the digital payment market alongside Apple Pay.
Indonesia Bans iPhone 16 Series
In other non-EU countries, Apple is also under pressure from regulators. For instance, the Indonesian authorities recently banned the sales of the iPhone 16 series due to unfulfilled investment obligations by Apple. The phones have been banned by Indonesia’s industry minister and the public is advised against importing phones from other countries.
The EU’s actions under the DMA, along with Indonesia’s recent ban, reflect a global trend of increased regulation of Big Tech, making them responsible for fairness, competition, and compliance with local laws.
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