Apple reportedly faces huge fines of up to $5.8 billion, the first fine under EU digital market law
Bloomberg reported that the EU is expected to fine Apple for violating
Apple to Face First EU Fine Under Bloc's Digital Markets Act (AAPL) - Bloomberg
https://www.bloomberg.com/news/articles/2024-11-05/apple-to-face-first-eu-fine-under-bloc-s-digital-markets-act
Apple reportedly facing first-ever EU fine over App Store rules - The Verge
https://www.theverge.com/2024/11/5/24289067/apple-eu-fine-digital-markets-act-app-store
The Digital Markets Act (DMA), which will come into effect in 2023 and be fully applied throughout the EU from April 2024, is a law that stipulates the imposition of fines of up to 10% of annual global turnover with the aim of preventing tyranny by large companies such as Apple, Google, and Meta.
In June 2024, it was speculated that Apple would be the first company to be prosecuted under the DMA, as EU authorities were investigating whether Apple's 'anti-steering provisions,' which prohibit users from being directed to services other than the App Store, violated the DMA.
Apple could be the first company to be prosecuted under EU digital market law - GIGAZINE
The European Commission is expected to impose sanctions against Apple by the end of November, when the term of European Competition Vice-President Margrethe Vestager expires, according to people familiar with the matter who spoke to Bloomberg on condition of anonymity.
But because the fines could be accompanied by periodic fines until Apple comes into compliance, the action has yet to be determined and could potentially be delayed until December, the people said.
In August 2024, Apple was fined approximately 1.8 billion euros (approximately 294 billion yen) for its anti-steering clauses violating EU competition law.
Apple ordered by EU to pay huge fine of 294 billion yen and change App Store rules for antitrust violations - GIGAZINE
The DMA allows for the imposition of fines of 10 percent of annual turnover on large IT companies and 20 percent if violations are not corrected, as well as periodic fines of up to 5 percent of the average daily turnover.
The fine is based on the previous fiscal year, and since Apple's annual sales in 2023 are expected to be about $380 billion, it is estimated that the fine could be $38 billion.
Bloomberg reached out to Apple for comment but had not received a response at press time, and the European Commission declined to comment.
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