Apple has become the first company fined under the European Union’s new Digital Markets Act (DMA), a landmark regulation aimed at curbing the influence of dominant digital “gatekeeper” platforms in the EU. The penalty marks a pivotal step in Europe’s crackdown on anti-competitive practices among major tech firms, setting a precedent for further actions.
The penalty against Apple follows an EU investigation into alleged anti-competitive practices within its App Store ecosystem, where restrictive policies have long drawn criticism. The DMA, introduced to ensure fair competition and foster market openness, mandates that companies like Apple offer third-party developers fair access to their platforms. By enforcing this rule, the EU aims to prevent tech giants from stifling smaller competitors and to enhance consumer choice.
This move signals that other digital giants may also face scrutiny under the DMA. The European Commission, led by competition chief Margrethe Vestager, is focused on ensuring that the digital market remains open and fair, targeting practices that have traditionally restricted third-party developer access and discouraged market competition.
Potential Hefty Penalties Await Apple Following Spotify Dispute
This fine arrives on the heels of Apple’s previous €1.8 billion ($2 billion) penalty for restricting Spotify’s ability to direct users to external payment options outside the App Store. In June, the EU warned Apple to ease these restrictions, urging it to allow developers more freedom to guide users outside its App Store ecosystem. Under the DMA, the EU has the authority to impose fines of up to 10% of a company’s global revenue, with potential increases for repeat violations.
This pressure reflects the EU’s proactive approach with the DMA, designed to curb anti-competitive practices before they cause harm, unlike traditional antitrust laws which react to established violations. Vestager has also pursued Apple over other issues, including tax arrangements in Ireland and restrictions on alternative payment options for Apple Pay. Recently, regulators compelled Apple to open the iPhone’s payment chip to third-party payment providers, enhancing competition with Apple Pay.
Indonesia Halts iPhone 16 Sales Over Investment Commitments
In a separate setback, Indonesia has banned the sale of the iPhone 16 series, citing Apple’s failure to meet domestic investment commitments. Indonesia’s industry minister has warned consumers against purchasing the device from abroad and urged the public to report imported devices. The ban underscores Indonesia’s commitment to enforcing compliance with local investment requirements and regulatory standards.
As Apple faces regulatory challenges across multiple continents, it remains under intense scrutiny from both regional and national governments, reflecting a global trend toward holding tech giants accountable to local laws and competitive fairness standards.
