According to the latest report, Apple is facing a fine of up to $38 billion over its App Store practices.
Apple 's troubles with the European Union are not over yet, and the tech giant could face a hefty fine for violating the Digital Markets Act (DMA).
According to Bloomberg, the European Commission will impose a hefty fine on Apple for violating "anti-steering" rules with the App Store.
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This would be the first time a company has been fined under the EU's new antitrust rules.
The penalty is apparently due to Apple "not allowing app developers to steer users to cheaper deals and offers outside the App Store."
This comes after the EU warned Apple for failing to provide developers with “effective means” to steer users away from the App Store.
The company is also being investigated for blocking the launch of alternative app stores in the region.
It’s not yet clear how much Apple could be fined, but under EU rules, regulators have the power to impose large fines.
In addition to fines of up to 10% of global sales, fines can rise to 20% for repeated violations. Other fines can be as high as 5% of average daily turnover.
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With an estimated $383 billion in revenue last year, Apple’s fine could total $38 billion.
It would also be on top of an earlier EU fine of about €1.8 billion ($1.93 billion) for abusing its power in the music streaming market, a fine imposed under old competition laws.
It is not yet clear when Apple will be officially fined.
Bloomberg predicts that the company will receive the fine later this month or later this year,
along with "periodic penalty payments" until the company complies with the law.
This decision is still being drafted. We'll see how the fine actually plays out in the coming months.
