According to a Financial Times, in a report citing three people familiar with the matter, the European Commission is planning to charge Apple for violating the Digital Markets Act. The EC says the iPhone maker has not complied with obligations under the act that forces the company to allow app developers to “steer” users to offers outside of the App Store without fees.
Apple could face non-compliance fines of up to 5% of its average daily worldwide revenue, which is currently just over $1 billion, according to the report.
The EU’s findings are preliminary, so Apple may have time to make moves to remedy the issue before the charges are formally laid by regulators. If the EU moves forward with the charges, the EC would formally announce it over the “coming weeks,” the report added.
Apple updated the App Store, Apple Pay, Safari, and more on the iPhone in the EU with the release of iOS 17.4 earlier this year. While Apple now allows alternative app marketplaces, it still charges a Core Technology Fee so it still gets a cut of the action.
