Apple is facing a staggering $38 billion fine, equivalent to 10% of its global revenue in 2023, for breaching the European Union's Digital Markets Act (DMA) rules.
The EU regulators have accused Apple of preventing app developers from directing users to cheaper options outside the App Store, thereby violating the bloc's new digital competition rulebook. The European Commission has given Apple a chance to respond to the preliminary findings, with a final decision due by March 2025.
Additionally, the commission has opened a new investigation into Apple's contractual terms, including a 'core technology fee' charged to developers for app downloads and installations from outside the App Store. Apple has responded, stating that it has made changes to comply with the DMA and is confident that its plan adheres to the law.
The company estimates that over 99% of developers would pay the same or less in fees under the new business terms. The case has significant implications for the tech industry, as the DMA aims to prevent 'gatekeepers' from dominating digital markets.