Apple could face potential $50 million daily penalty under DMA

The European Commission, which has been investigating Apple since March, is reportedly prepared to bring formal charges against the company, according to sources who spoke with the Financial Times. 

The European Commission, which has been investigating Apple since March, is reportedly prepared to bring formal charges against the company. The commission’s primary allegation is that Apple has been stifling competition on its App Store and has not adhered to the requirement allowing developers to guide users towards alternative payment methods without incurring additional fees. 

While the investigation has yielded preliminary findings, Apple still has a window of opportunity to address these issues before any final punitive measures are enforced. However, if the charges proceed, Apple could be the first major tech company penalized under the DMA, facing fines amounting to 5% of its average daily global revenue, which translates to approximately $50 million per day given Apple’s estimated $1 billion in daily turnover.

This is not Apple’s first encounter with significant legal challenges. The company has been involved in a protracted legal battle with Epic Games over App Store fees. Although Epic Games did not achieve the desired changes in the US, the case highlighted the global scrutiny of Apple’s App Store policies. The DMA has already forced Apple to lower its commission fees from 30% to 17% for transactions within the EU, although Apple has introduced new technology fees that may counteract these reductions.

The EU is also conducting investigations into other tech giants, including Meta and Google’s parent company Alphabet. While these companies are also under scrutiny, the current evidence suggests that Apple might be the first to face charges. The potential penalties underscore the DMA’s broader aim to curb the market dominance of major digital platforms and ensure fair competition.