Apple on EU radar again: Tech giant risks fresh charges over App Store curbs

Apple Inc. is at risk of facing another charge sheet from European Union (EU) antitrust watchdogs due to alleged violations of a new digital law that led to a $579 million fine earlier this year.

The EU officials are preparing to hand the company an ultimatum to allow developers to inform customers of cheaper deals away from the App Store, according to sources known to Bloomberg. The deadline will expire on 26 June 2025.

Apple in deep strife

If the iPhone maker fails to comply with the warning, then it might attract new fines under the bloc’s Digital Markets Act, which can be as high as 5% of average daily worldwide revenue per day of non-compliance, reported Bloomberg.

A European Commission spokesperson told Bloomberg that it wouldn’t reveal the next steps before the deadline for Apple to submit a proposal ends. The spokesperson added that regulators have ample regulatory powers if Apple continues to breach its obligations under the DMA.

How can the tech giant avoid another fine?

Bloomberg reported that Apple could still avoid legal action if it manages to appease the commission’s fears with an imminent proposal that is enough to fix the alleged violations.

Apple was already fined once on 23 April, the same day Meta Platforms Inc. was slapped with a $231 million penalty for its “pay or consent” ad-free service on Instagram and Facebook. Bloomberg said both US tech giants were ruled to have violated the strict DMA rules that lay out a series of dos and don’ts for the world’s largest technology firms.

Apple complains of the bloc’s ever-changing regulations

A spokesperson for Apple told Bloomberg that EU regulators keep changing the rules under DMA compliance, making it impossible to comply with their steering decision.

The firm also added that it is spending hundreds of thousands of hours working to comply with the EU’s ever-changing regulations, according to Bloomberg.

EU regulators face heat from Apple

On the heels of Apple’s April fine, the California-based firm accused the bloc’s regulators of discriminating against the company and forcing it to give away its technology for free, reported Bloomberg.

Last year, the company was hit with a €1.8 billion EU fine for shutting out music-streaming rivals on the iPhone, Bloomberg added.

Over the years, the EU has imposed expensive penalties against different firms, including more than $8 billion in fines against Alphabet Inc.’s Google and a separate order for Apple to pay Ireland back taxes of $15 billion.

Under its abuse-of-dominance rules, it has also forced changes out of Amazon.com Inc.'s marketplace platform and Apple’s tap-and-go chip, while also investigating Microsoft Corp.'s video conference software, Teams, as reported by Bloomberg.