In March, the European Commission announced it was launching an investigation into Apple’s new fee structure for alternative app stores. In particular, it was noted that Apple charges developers a “Core Technology Fee” if they direct users to offers outside of its App Store. Additionally, if a developer uses Apple’s payment processor, they must pay an additional 3% to Apple.
According to a new report from the Financial Times, charging such fees to developers would violate the EU’s Digital Markets Act (DMA). This will be the first time such a charge has been leveled against a technology company under the DMA, which came into force this year. The EU will sue Apple under the Digital Markets Act and plans to fine up to $50 million per day.
According to sources familiar with the matter, the charges are expected to be announced in the coming weeks. If Apple does not comply with the rules, it will be fined 5% of its daily global turnover. This equates to approximately $50 million per day. However, things are not that simple. Apple may take steps to fix its practices and thus avoid penalties after the European Commission announces its preliminary findings.
Ultimately, this investigation into Apple’s practices will determine whether the company’s new pricing policies comply with EU law. The findings of the European Commission and how Apple will react to this situation will have significant repercussions in the technology world. This development, which could shape Apple’s future strategies, could also set a precedent for other technology companies. Europe’s regulatory role in digital markets is further strengthened by such investigations and penalties. It is a matter of curiosity what step Apple will take and how the EU will react to this situation.
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