Apple will be fined by the European Union under its new antitrust regulations, according to reports on Wednesday.
The E.U.’s new Digital Markets Act would require Apple to allow alternatives to the App Store on its devices. Apple was charged with violating this rule in June.
“The developers’ community and consumers are eager to offer alternatives to the App Store. We will investigate to ensure Apple does not undermine these efforts,” European Commissioner for Competition Margrethe Vestager said in June.
The fine’s amount has not yet been set, but companies can be fined up to 10% of annual global revenue for a first offense under the Digital Markets Act. The E.U. may issue the fine before the end of this month, according to Bloomberg.
The E.U. also found that Apple does not permit app developers to promote offers on alternative distribution channels.
The Digital Markets Act came into effect in 2023, and companies like Apple, Amazon, Meta, and Microsoft were given until March 2024 to comply. Apple is the first company to be charged.
Apple was already fined EU€1.8 billion ($2.9 billion) by the European Union in March, after the European Commission found Apple prevented app developers from telling Apple users about cheaper alternative music subscription services.
“Apple's conduct, which lasted for almost ten years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions because of the high commission fee imposed by Apple on developers and passed on to consumers in the form of higher subscription prices for the same service on the Apple App Store,” the European Commission said at the time.
The E.U.’s Court of Justice also ruled Apple must pay EU€13 billion in back taxes to Ireland in September, confirming a European Commission order from 2016.
Apple’s (NASDAQ: AAPL) share price closed at US$222.72 today, down from the previous day’s $223.45. Its market cap is $3.4 trillion.