Published: 11:35, November 6, 2024 | Updated: 11:51, November 6, 2024
Apple set to face fine under EU's landmark Digital Markets Act, sources say
By Reuters
This photo taken on Feb 12, 2023 in Brussels shows reflexions on a smartphone screen of logos of online platforms google, facebook, linkedin, Amazon, Apple store and Tiktok as the European Commission announced the digital firms, identified as "gatekeepers" by the EU, must comply from March 6, 2024, under a landmark law - the Digital Markets Act (DMA). (PHOTO / AFP)

Apple is set to be fined by the European Union's antitrust regulators under the bloc's landmark rules aimed at reining in the power of Big Tech, making it the first company to be sanctioned, sources with direct knowledge of the matter said on Tuesday.

The regulators charged in June that the iPhone maker had breached the bloc's tech rules. The charge against Apple was the first by the Commission under its Digital Markets Act (DMA).

ALSO READ: EU to assess Apple's compliance with Digital Markets Act

The fine is likely to come this month although the timing could still change, the sources said.

The fine would add to Apple's mounting antitrust troubles, as EU regulators attempt to level the playing field for smaller firms.

This comes just months after Brussels fined Apple 1.84 billion euros ($2.01 billion) in March for thwarting competition from music streaming rivals via restrictions on its App Store - Apple's first ever penalty for breaching EU rules.

READ MORE: Meta will not immediately join EU's AI Pact ahead of new law

Apple also faces an investigation into new fees imposed on app developers. DMA violations could result in a fine of as much as 10 percent of a company's global annual turnover.

This illustration photo shows the Apple app store logo reflected from an iPhone onto the back of an iMac in Los Angeles, August 26, 2021. Apple has agreed to loosen payment restrictions on its App Store, a major change announced in a settlement with small developers as the US technology giant faces growing scrutiny and legal challenges over its tightly controlled online marketplace. The change will allow small developers to inform their customers of alternative payment options beyond the official App Store. (PHOTO / AFP)

The Digital Markets Act (DMA), which came into force earlier this year, requires Apple to allow users to set the default web browser of their choice on iPads, permit alternative app stores on its operating system and allow headphones and smart pens to access iPad OS features.

Apple declined to comment. The European Commission did not immediately respond to a Reuters request for comment.

Apple also lost a long-running court battle with the EU in September, resulting in the company being forced to pay 13 billion euros in back taxes to Ireland.

READ MORE: Apple lets rivals use tap-and-go payments as EU warns on tech charges

Bloomberg first reported on Apple's imminent EU fine earlier on Tuesday.

Watchdogs are readying the penalty after Apple failed to allow app developers to steer users to cheaper deals and offers outside of the App Store, Bloomberg reported, citing people familiar with the case.