Apple has become the first major US technology company to face charges under the European Union’s tough new antitrust technology rules, and if found guilty, the company would face a fine of $38 billion.
‘The Verge’ reports that the European Commission accused tech giant Apple of violating the EU’s Digital Markets Act, which aims to encourage competition.
The European Commission said that restrictions the iPhone maker imposed on developers using its mobile App Store violated the 27-nation bloc’s Digital Markets Act (DMA), based on preliminary findings of its investigation.
Because of the violations, the company now faces a fine of ten percent of its global revenue in 2023, or $383 billion.
The DMA is a comprehensive regulatory system designed to stop technology “gatekeepers” from controlling digital markets by imposing heavy financial penalties.
READ ALSO:Apple and OpenAI continue negotiations on iPhone chatbot development
EU Competition Chief Margrethe Vestager expressed concern on social networking site X that Apple’s new business model makes it difficult for app developers to function as an alternative marketplace and reach their end consumers on iOS.
“We are concerned that Apple’s new business model makes it difficult for app developers to operate as an alternative marketplace and reach their end users on iOS,” Vestager added.
Apple Inc. stated that they “have made several changes to comply with the DMA in response to feedback from developers and the European Commission” over the previous months.
“We believe our plan complies with the law, and estimate that more than 99% of developers will pay the same or lower fees to Apple under the new business terms we created,” the company said in a statement.
The post Apple faces $38 billion fine for breaking European regulations appeared first on Latest Nigerian News | Top News from Ripples Nigeria.
