Brussels is set to charge Apple over allegedly stifling competition on its mobile app store, the first time EU regulators have used new digital rules to target a Big Tech group.
The European Commission has determined that the iPhone maker is not complying with obligations to allow app developers to “steer” users to offers outside its App Store without imposing fees on them, according to three people with close knowledge of its investigation.
The charges would be the first brought against a tech company under the Digital Markets Act, landmark legislation designed to force powerful “online gatekeepers” to open up their businesses to competition in the EU.
The commission, the EU’s executive arm, said in March it was investigating Apple, as well as Alphabet and Meta, under powers granted by the DMA. An announcement over the charges against Apple was expected in the coming weeks, said two people with knowledge of the case.
These people said regulators have only made preliminary findings, and Apple could still take actions to correct its practices, which could then lead regulators to reassess any final decision. They added the timing of any announcement could also shift.
The EU could also decide to announce charges against other tech groups, with regulators still investigating whether Google parent Alphabet is favoring its own app store and Facebook owner Meta’s use of personal data for advertising.
If found to be breaking the DMA, Apple faces daily penalties for non-compliance of up to 5 percent of its average daily worldwide turnover, which is currently just over $1 billion.
The move comes as competition watchdogs around the world increase their scrutiny of Big Tech companies and their market dominance. In March, the US brought an antitrust case against Apple for allegedly using its power in the smartphone sector to squash rivals and limit consumer choice.