In March, the European Commission announced an investigation into Apple’s new fee structure for alternative app stores. The reason for the investigation is that Apple charges a “Core Technology Fee” for users that developers refer to offerings outside the App Store and an additional 3% fee for using its payment processor. Imposing such fees on developers would violate the EU’s Digital Market Act (DMA).
Apple faces a daily fine of $50 million from the EU: Accused of failing to comply with the Digital Market Act
This is the first time a tech company has been charged on the basis of the DMA. The DMA came into force earlier this year and aims to oversee the anti-competitive practices of tech giants.
According to sources close to the matter, the charges are expected to be announced in a few weeks. Apple could face a fine of 5% of its global daily turnover for non-compliance, or about $50 million per day.
Apple’s new fee structure covers developer fees for alternative app stores. Developers must pay Apple a “Core Technology Fee” when they refer sales outside the App Store.
They also have to pay an additional 3% fee when they use Apple’s payment processor. These practices may be found to be contrary to the EU’s Digital Market Act, which aims to protect competition and ensure the fair functioning of the market.
Apple risks facing fines of up to $50 million per day, but this is not a foregone conclusion. The company may take steps to correct its practices after the European Commission announces its preliminary findings.
These corrections could allow Apple to avoid a fine. If the company is subject to such regulation, it could set a precedent for other big tech companies and make digital markets more competitive.
It remains to be seen how Apple will respond to the European Commission’s charges under the Digital Market Act. The company could try to comply by creating a fairer fee structure for app developers and users.
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