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Apple is poised to become the first tech giant fined under the European Union's new Digital Markets Act (DMA), following allegations of unfair market practices. Expected to be announced later this month, the penalty targets Apple's failure to comply with provisions aimed at leveling the playing field for smaller firms within the EU's digital ecosystem.
The DMA, which took effect this year, requires Apple to enable users to choose their default browser, support alternative app stores, and allow various hardware devices to access iOS features. EU regulators charged the tech company with violations in June, adding to Apple's growing list of legal challenges in Europe. Earlier this year, Apple faced a $2 billion fine for restricting music streaming rivals through App Store policies and recently lost a court battle resulting in $13 billion in back taxes to Ireland.
Apple's compliance issues extend to app developers who are not permitted to direct users to external deals, which led to the latest investigation. The DMA allows fines of up to 10% of a company's global revenue, signaling a potential financial setback for the tech giant. Regulators hope the action against Apple will send a strong message to other big tech firms about the importance of adhering to fair digital market standards.
While Apple has yet to comment on the matter, the EU's increasing scrutiny reflects its commitment to reducing Big Tech's dominance. With the DMA now in force, the case against Apple underscores the EU's resolve to curb monopolistic practices, setting a new precedent in tech industry regulation.
