Apple (NASDAQ:AAPL) is racing to meet a June 26 deadline or risk a new charge sheet from the European Commission after a 500 million fine in April for breaching the Digital Markets Act’s anti-steering rules.
Regulators want Apple to let developers tell users about cheaper app-purchase options outside the App Storean obligation the company has so far resisted, arguing that the EU keeps moving the goalposts. If Apple fails to propose a remedy that satisfies Brussels, fresh penalties could follow swiftly under the DMA’s strict enforcement framework.
The April penalty stemmed from Apple’s contractual bans on steering, and Meta (NASDAQ:META) also picked up a 200 million fine for similar violations. Apple is simultaneously challenging an EU order to open iOS to rival technologies, underscoring the fraught negotiations over how gatekeepers must adapt.
Since September 2023, six tech giantsincluding Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT)have fallen under the DMA, which demands clearer distribution paths and fairer terms for third-party developers. Why it matters: New charges would ratchet up legal and reputational risks for Apple, potentially shaking investor confidence and accelerating shifts in Europe’s app-commerce landscape. Investors will be watching Apple’s submission by June 26 and any reaction from the Commission ahead of Q3 earnings in late October.
This article first appeared on GuruFocus.