According to sources from the Financial Times, the European Commission believes that Apple is not complying with the rules of the European Digital Markets Act. As a result, the company could be fined up to one billion dollars per day for failing to comply with the legislation.The Digital Markets Act came into effect in March with the aim of making digital markets freer by enabling more competition. This included requiring Apple to allow other companies to offer their own app stores on iOS. While this is technically possible now, it is only allowed if those companies pay 0.5 euros per app installation. Additionally, fees are also charged for using iOS payment options.
Since the new legislation threatens significant revenue loss for Apple (the company earns up to 30% of all revenue processed through the App Store), Apple is naturally trying to compensate. However, Europe argues that this goes against the spirit of the Digital Markets Act. An investigation was launched, and now it appears that Apple is indeed violating the rules.
As a consequence, the European Commission can impose a hefty fine on Apple to increase pressure to comply with the rules. This fine could be up to 5% of the company's daily turnover. For Apple, this could mean a fine of up to one billion dollars per day.
SOURCE
Financial Times
