Apple (NASDAQ:) is facing charges under the European Commission under the Digital Markets Act for allegedly obstructing competition in its mobile app store, according to a report from the Financial Times. The report quoted three people familiar with the investigation as saying that EU regulators found that Apple had failed to comply with requirements allowing developers to direct users to offerings outside the App Store without charging them a fee.
While sources told the FT that so far regulators have only made preliminary findings, if charges were brought it would be the first time a major tech company would have to face trial under the DMA, which aims to force large global tech firms to open up their business to competition in the EU.
An announcement about the charges will be published within the next few weeks, the people said, although Apple could take action in response to the regulator’s findings, potentially leading to a review of the decision.
Apple will be subject to daily non-compliance fines of up to 5% of its average daily global turnover if it is found to be in violation of the DMA. It will be about $1 billion.
The development comes even as big tech companies face criticism from regulators over anti-competitive practices and struggle to comply with new regulations. Earlier this year, Apple announced changes to its mobile software, app store and browser that will allow users to access competing stores and apps from other sources. The fees charged to companies selling their products and services through the App Store have also been significantly reduced.
Apple has not yet released a statement in response to the report, but pointed to an earlier statement that said: “We are confident that our plan is consistent with the DMA, and we will continue to engage constructively with the European Commission as it progresses.” their investigations.”
Alphabet and Meta are also under investigation and charges against them are possible in the near future, the regulator said in March.