APPLE FACES NEW EU SCRUTINY OVER APP STORE RESTRICTIONS

European Union regulators warned Apple on June 16, 2025, that it risks fresh antitrust charges unless it resolves violations of the Digital Markets Act, a law aimed at curbing tech giants’ dominance. The European Commission, the EU’s executive arm, set a June 26 deadline for Apple to allow app developers to inform users about cheaper payment options outside the App Store, a practice known as steering. Failure to comply could trigger daily fines up to 5% of Apple's global revenue, a significant threat given the company’s $394 billion in sales last year.

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This follows a €500 million ($579 million) fine in April for similar App Store restrictions, marking the EU's first penalty under the DMA, effective since March 2024.

The Commission accused Apple of blocking developers from directing users to alternative payment systems, stifling competition.

Apple insists it has made changes, including allowing one external link per app, but regulators say these fall short, citing a 27% commission on external purchases and restrictive link formats.

Apple's response has been sharp. A spokesperson told Bloomberg that EU regulators keep shifting compliance requirements, making it impossible to meet their steering rules.

The company argues these demands undermine user privacy and force it to give away technology for free, a stance it reiterated after the April fine.

The ongoing clash highlights the EU's aggressive push to open digital markets, with Apple at the center of its enforcement efforts.

A HISTORY OF EU PENALTIES

The EU’s focus on Apple isn't new. Last year, the company faced a €1.8 billion fine for limiting music-streaming rivals like Spotify on the iPhone, a case sparked by a 2019 complaint. In 2016, Apple was ordered to pay Ireland €13 billion in back taxes, a ruling it's still contesting. These penalties reflect the EU's broader crackdown on tech giants, with Alphabet’s Google facing over $8 billion in fines and Amazon and Microsoft under scrutiny for their platforms.