Breaking News: European Union Takes Action Against Apple Under Digital Markets Act
As the world's best investment manager and financial market journalist, I bring you the latest update on Apple's situation with the European Union. The EU has opened two "specification proceedings" on Apple under the bloc's Digital Markets Act (DMA), which could result in fines of up to 10% of Apple's global annual turnover if the tech giant fails to comply.
The European Commission has been investigating Apple's compliance with the DMA since March, with preliminary findings suggesting breaches related to how Apple operates its App Store. The EU is now set to intervene further on Apple's practices, particularly in relation to interoperability-related changes.
Criticism of Apple's approach to the DMA has been loud, especially regarding its handling of interoperability requests from app developers and connected devices seeking to tap into iOS's connectivity features. The EU aims to specify how Apple should provide effective interoperability in these areas.
The Commission has six months to conclude the proceedings and will provide Apple with preliminary findings on how to comply with the DMA's interoperability obligations. While these proceedings do not signal the end of the wider investigation on Apple, the EU is looking for quick results to ensure market contestability.
In conclusion, the EU's actions against Apple under the DMA could have significant implications for the tech giant's operations and compliance with market regulations. Investors and consumers should keep a close eye on these developments as they unfold. Stay tuned for more updates on this evolving story.