Apple is in Trouble with the European Commission: A $30 Billion Fine is on the Horizon!

European Commission, stated that Apple violated the Digital Markets Act (DMA) due to its App Store policies. Violation involving previously agreed laws, AppleIt could cost billions of dollars.

According to the commission’s report, Apple allegedly prevents application developers from directing customers to alternative content and pricing options. Preliminary findings of the investigation reveal that Apple prevented developers from providing pricing information or promoting alternative payment options.

Developers can simply add a link within the app that directs the customer to a web page to learn about alternative payment systems. If the customer purchases a digital product or service through this link within a week, the developer has to pay a fee to Apple.

Statement on the Issue from the European Commission and Apple

Margrethe Vestager, Commission Vice-President for Competition Policy, said: “Our stance on this issue with Apple has not changed. In-app redirects are important to ensure the independence of app developers and to ensure consumers are aware of better offers.” said.

Apple stated that it has made changes to comply with the DMA and continues to listen to the European Commission, and the company said: “We are confident that our plan is legal, and we estimate that over 99% of developers will pay Apple the same or less. All developers who list their apps on the App Store in the EU have the opportunity to direct their users to the web to complete their purchases. “ he said.

According to preliminary information, the EU may fine Apple up to 10% of its global revenue. This would mean a fine of more than $30 billion for Apple, and that figure could double in the event of a repeat. In order for the fine to be imposed, the findings will need to be concluded within one year from the date the investigation began.

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