Apple faces $38bn fine for breaking European regulation rules

Apple has become the first major US tech company to face charges under a harsh new antitrust tech rule from the European Union, and should it be found guilty, the company faces a $38 billion fine.

‘The Verge’ reports that the European Commission has accused tech giant Apple of breaking the EU’s Digital Markets Act, which aims to promote competition.

The European Commission stated that the limitations the iPhone manufacturer places on developers utilizing its mobile App Store had violated the Digital Markets Act (DMA) of the 27-nation bloc, based on the early findings of its investigation.

Due to the violation, the business now faces penalties equal to ten percent of its 2023 global revenue, or an astounding $383 billion.

The DMA is a comprehensive system of rules designed to stop tech “gatekeepers” from controlling digital markets by imposing severe financial penalties.

READ ALSO:Apple, OpenAI resume negotiations on development of iPhone chatbot

EU Competition Chief Margrethe Vestager expressed worry on social networking site X that Apple’s new business model is making it too difficult for app developers to function as alternative marketplaces and reach their end consumers on iOS.

‘’We are concerned Apple´s new business model makes it too hard for app developers to operate as alternative marketplaces & reach their end users on iOS,” Vestager added.

Apple Inc. stated that it “has made several changes to comply with the DMA in response to feedback from developers and the European Commission” over the previous few months.

“We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” the company said in a statement.

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