Apple could be the first major Tech company to be sued in the European Union for non-compliance with the Digital Markets Act. If convicted, the fine would amount to tens of billions of euros.
Holder of a iPhone and living in one of the 27 countries of theEuropean Union, you must have noticed that something changed at the beginning of March 2024. The iOS 17.4 update arrived with a whole bunch of new features, some of which the rest of the world was not entitled to. And for good reason: they are there becauseApple must comply with the Digital Markets Act (DMA), a European text requiring large Tech companies to respect several provisions.
For example, it is thanks to DMA that it is now possible to install an application store other than the App Store on your iPhone. A real revolution for an ecosystem which has always fiercely protected its hegemony. Except that Apple obviously didn’t want to give in so easily. Even before the application of the DMA, the company announced the introduction of a tax called “core technology”. The principle is simple: for any installation of an app outside the App Store after the first million, the developer will have to pay 50 euro cents. A way of doing things that is clearly problematic.
Apple could face a fine of tens of billions of euros in the European Union
According to information obtained by the Financial Times which was able to speak with sources close to the matter, the European Commission could sue Apple for non-compliance with the DMA. More precisely, she would criticize the firm for the existence of the “core technology” tax, a roundabout way to ensure dominance of the App Store facing alternative stores.
Read also – iPhone: installing an alternative store via Safari can be used to spy on you, or worse
If convicted, the fine could be up to 10% of Apple’s average annual revenues worldwide. If we base ourselves on those of 2023, this would represent approximately 36 billion euros. The sources specify that these are preliminary elements. Apple therefore has time to act in the right direction to avoid prosecution, or at least delay them. Otherwise, the European Commission could make an official announcement on this subject.in the next weeks“.