Newscenter Media News The European Union (EU) is set to hit American multinational corporation and technology company, Apple with a huge fine for breaching its Digital Market Act (DMA) according to a report by Bloomberg.
Citing people familiar with the case, the publication revealed that the tech company will face the first DMA fine- a move which represents an escalation of a clash with regulators over the dominance of its hugely profitable App Store.
The iPhone maker’s failure to permit software developers to direct customers to less expensive offers and deals outside of the software Store has prompted watchdogs to prepare a penalty.
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The punishment under the strict new Digital Markets Act (DMA) was imposed months after Apple, a California company located in Cupertino, was fined €1.8 billion (US$2 billion) for similar violations of the bloc’s conventional competition laws involving the music streaming service Spotify.
According to a report by Bloomberg, the EU’s ruling in the case is still being formulated but may be announced later this month. Although the DMA did not mention the exact amount of the fine, considering Apple’s sales, it might amount to tens of billions of dollars because it permits penalties of up to 10% of global annual turnover.
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