DMA: Apple Likely to Face the First Fine

Bloomberg and Reuters reported on November 6, 2024, that Apple is expected to be the first company sanctioned under the Digital Markets Act (DMA). This European legislation imposes numerous obligations on companies deemed “gatekeepers” in the European digital market. The DMA aims to prevent these entities from abusing their dominant position to stifle competition.

Anti-steering involves preventing app developers from redirecting their users to a website for purchases or subscriptions. Transactions made outside the app bypass the commissions that Apple or Google impose on in-app equivalents. The DMA has explicitly banned this practice.

While Apple has officially ended anti-steering, it has imposed overly burdensome restrictions on developers wishing to include redirect links. The tech giant forbids them from displaying prices on their website next to these links (often lower than in-app prices) or promoting these external offers.

The Commission also accuses Apple of continuing to charge commissions on purchases made outside the app, “beyond what is strictly necessary.” The European executive is therefore preparing to impose a fine on Apple for failing to comply with the DMA.

Apple reportedly plans to appeal the sanction, allowing it to continue these lucrative practices during the months or even years the legal process may take. Some analysts suggest the Commission might impose daily financial penalties to compel the company to quickly end these practices.