Apple to become the first tech company to be charged under EU digital law

The European Commission intends to charge Apple with suppressing competition in the mobile app store. This is the first time that EU regulators have used new digital rules to attack a group of large technology companies, the Financial Times writes, UNN reports .

Details

The European Commission has found that the iPhone maker is not fulfilling obligations that allow app developers to "direct" users to offers outside its App Store without charging them a fee, according to three people with close knowledge of the investigation.

The charges are the first to be brought against a tech company under the Digital Markets Act, a landmark law designed to force influential "online controllers" to open their businesses to competition in the EU.

The announcement of the charges against Apple is expected in the coming weeks, according to two people familiar with the case.

These people stated that the regulators have only made preliminary findings and Apple could still take steps to correct its practices, which could then lead regulators to reassess any final decision. They added that the timing of any announcement could also change.

If Apple is found to be in violation of the DMA, it faces daily fines for non-compliance of up to 5 percent of its average daily global turnover, which is currently just over $1 billion.

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In January, Apple announced historic changes to its iOS mobile software, App Store, and Safari browser in the EU.

The changes were an attempt to appease regulators in Brussels and meant that Apple would allow users to access competing app stores and download apps from other sources. The changes also included a reduction in the commission paid by companies using the App Store to sell digital goods and services from 30 percent to 17 percent.

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