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PratapDarpan > Blog > Tech Hub > Apple receives first fine under EU Digital Markets Act
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Apple receives first fine under EU Digital Markets Act

PratapDarpan
Last updated: 6 November 2024 10:20
PratapDarpan
8 months ago
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Apple receives first fine under EU Digital Markets Act
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Apple receives first fine under EU Digital Markets ActWith this first fine, the EU aims to set a precedent signaling its commitment to enforcing the DMA. Under the DMA, companies like Apple are required to follow strict rules that promote openness and fair access for third-party developers.

Apple receives first fine under EU Digital Markets Act

With this first fine, the EU aims to set a precedent signaling its commitment to enforcing the DMA. Under the DMA, companies like Apple are required to follow strict rules that promote openness and fair access for third-party developers.

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Apple receives first fine under EU Digital Markets Act

The first fine imposed on Apple under the EU’s Digital Markets Act (DMA) marks a significant development in the EU’s approach to regulating big tech companies. This new law targets gatekeeper firms – major digital platforms that hold dominant positions in key areas such as online search, social media and app stores. The DMA is designed to ensure fair competition and prevent tech giants from using their influence to suppress smaller competitors.

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This fine has been imposed on Apple following an investigation into the company’s alleged anti-competitive practices within its app ecosystem. Under the DMA, companies like Apple are required to follow strict rules that promote openness and fair access for third-party developers, Bloomberg reports. Apple’s App Store policies, which have previously been criticized for being restrictive, are at the center of scrutiny.

With this first fine, the EU aims to set a precedent signaling its commitment to enforcing the DMA. Other tech giants may also face scrutiny as the EU looks to level the playing field in the digital sphere. The fine highlights growing regulatory pressure on major tech companies to comply with new standards that prioritize consumer choice and market competition.

Just months after being hit with a massive €1.8 billion ($2 billion) fine for anti-competitive practices related to Spotify, Apple faces another potential fine under the EU’s Digital Markets Act (DMA). The move follows a warning issued to Apple in June, in which it urged developers to give developers more freedom to guide users outside its App Store. Unlike traditional antitrust laws, the DMA is designed to stop anti-competitive actions before they harm market fairness. Under its rules, the EU can fine big tech companies up to 10 percent of their global revenue – or 20 percent for repeat offenders – as well as possible daily penalties.

EU competition chief Margrethe Vestager has challenged Apple on several fronts, including the issue of tax benefits in Ireland and rules limiting Spotify’s ability to direct users to alternative payment options outside the App Store. Recently, regulators also forced Apple to allow third-party payment providers access to the iPhone’s payment chip, opening up competition with Apple Pay.

This comes after Indonesia stopped selling the iPhone 16 series in the country. The country has also declared that using the phone is now illegal. Indonesia’s Industry Minister has also warned the people of the country against buying equipment from abroad. The reason behind the ban is Apple’s “unfulfilled investment commitments”. He urged the public to report such instruments, strengthening the government’s stance on adherence to local investment requirements. This warning highlights the seriousness of the certification gap and the Indonesian government’s commitment to ensuring compliance with domestic regulations.

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