It is becoming a well-known story that the EU keeps a watchful eye on Apple's business models. Apple is again under fire from the European Union (EU) for potential violation of the new Digital Markets Act (DMA).
The EU's competition chief, Margrethe Vestager, has raised serious concerns that Apple may be preventing companies from informing users of cheaper options outside the App Store.
"Apple is very important because a lot of good business happens through the App Store, which happens through payment mechanisms, so of course, although I can say that it was not expected from such a company, we will enforce it with exactly the same highest priority as with any other business," Vestager said.
This comes after the European Commission opened an investigation into Apple in March 2024 to enforce the DMA, which came into effect this year. But what is DMA?
DMA targets Big Tech companies and wants to create a level playing field on the digital market. Companies designated as "gatekeepers" under the DMA, including Apple, Microsoft, Google and others, must comply with certain rules. The results of the DMA look promising. Apple revealed that all options to allow users to choose the default browser and search engine will come to the iPad later this year.
According to news reports, the EU is preparing preliminary charges against Apple based on the investigation. If Apple is found guilty of violating the DMA rules, they could be fined up to 10% of their global annual revenue. This comes after Apple recently dodged a $40 billion fine, not all of it, but reportedly most of it, although the final verdict is still pending.
Vestager highlighted his surprise at these potential violations by a company like Apple. Vestager, nearing the end of her decade as the EU's competition chief, has actively pursued investigations into cartel and monopoly cases against tech giants such as Google parent Alphabet. Apple has not yet responded to the EU's concerns. The study's conclusions are expected to be published soon.