In March, the European Commission (EU) launched an investigation into Apple’s new fee structure for alternative app stores.
This move scrutinizes Apple’s “Core Technology Fee,” imposed on developers directing users to offers outside its App Store. Additionally, Apple charges an extra 3% if developers utilize its payment processor.
The investigation suggests that these fees could violate the European Union’s Digital Markets Act (DMA), which came into effect earlier this year. The DMA aims to create a fairer digital marketplace by preventing large tech companies from abusing their dominant positions. If Apple is found in breach, it would mark the first instance of a tech company being charged under the new regulations.
According to a report by GSMArena, sources familiar with the matter indicate that the European Commission might announce the charges in the coming weeks. If Apple is found non-compliant, it could face a substantial penalty of up to 5% of its global daily turnover. Given Apple’s massive revenue, this fine could amount to approximately $50 million per day.
However, the situation remains fluid. Apple might still have the opportunity to adjust its practices to meet the European Commission’s requirements after the preliminary findings are released. This potential for corrective action could prevent the imposition of such hefty fines.
The investigation underscores the growing regulatory scrutiny tech giants face in Europe. The DMA, in particular, represents a significant step in the EU’s efforts to rein in the market power of major digital platforms. It sets strict rules for companies designated as “gatekeepers,” which include provisions on data sharing, interoperability, and platform neutrality.
Apple’s fee structure has been a contentious issue, with many developers arguing that it stifles competition and innovation. By imposing additional costs on alternative payment methods and app distribution channels, critics say Apple maintains its monopoly over the iOS ecosystem. This investigation could potentially lead to a more open and competitive landscape for app developers and consumers alike.
As the European Commission prepares to release its findings, all eyes will be on Apple and how it responds to these regulatory challenges. The outcome could have far-reaching implications for the tech industry and the future of digital market regulation in the EU.