The European Union’s Digital Markets Act, a piece of legislation preventing major technology companies from cornering their markets passed in 2022, has found its first victim: Apple. The EU has said Apple is in violation of the DMA because Apple prevents app developers from steering consumers to alternative channels, allowing Apple to maintain control of the app marketplace. The EU added that Apple’s developer fees were “beyond what is strictly necessary”.
Apple disputed the allegations, claiming it operates within the DMA’s guidelines because it allows developers to direct users to websites to purchase and download apps and requires fees to operate its large app platform. On top of it being regular corporate policy, Apple’s defensive disposition may also be due to the numerous changes Apple has already made to accommodate the DMA. It has allowed rival app stores to be downloaded and has lowered its fees from 30% to 17%.
If the EU finds that Apple is in violation of the DMA, which will be decided on March 25, 2025, then Apple may be fined up to 10% of its global revenue or around $40 billion. If this happens, then it will be a part of the larger tech regulation saga that has been growing for the last few years, especially in the EU. In this saga, Apple has already been forced to make changes and pay billions in fees.