Summary
Technology conglomerateAppleis once again facing legal woes, as the iPhone creator becomes the first tech company to face charges from the European Commission for violations of the Digital Markets Act (DMA).Applehas been embroiled in a number of legal battles in recent months, and this latest hit from the EC has once again sparked discussion over the powerhouse company’s practices.
One of the largest and most profitable brands in the world, Apple has been the subject of scrutiny over the years, with recent litigation against the conglomerate continuing to raise eyebrows. In spite of a ruling in favor ofApple against Epic Gamesin 2023, the tech giant continues to face new troubles from even larger entities.
On June 24, the European Commission released astatementthat it had sent preliminary findings to Apple in regard to an investigation evaluating violations of the DMA. In its preliminary view, the European Commission has determined that theApp Store business practicesviolate Article 5(4) of the DMA. The three key business terms that were found in violation included limitations on redirecting consumers, only allowing a link-out process to provide consumers with purchasing details, and fees determined to be excessive. Apple is able to appeal these findings, as the European Commission is now continuing a non-compliance investigation. If found to be in violation of the DMA, Apple could face fines of up to 10% of its total worldwide earnings on these infringements.
Tech Companies Continue to Face Legal Battles
Apple is just one of many major tech companies to find itself in the midst of legal troubles, with a number of big names facing similar battles. Global conglomerate Google has been served with a number of filings over the past several years, including litigation from 36 different US states and a massiveantitrust lawsuit by Epic Games, the latter of which ended in a ruling against Google. Epic Games itself was recently hit with a $1 million fine in the Netherlands for child safety violations in the Epic Games Store, and Sony received a favorable ruling in March 2024 in its seven-year battle against Genuine Enabling Technology. As AAA businesses in the tech industry continue to be placed under a critical lense, audiences remain critical of the sometimes questionable practices of Apple and other major players.
With major companies like Apple andMicrosoft achieving trillions in market value, consumers continue to question the tactics employed to achieve such feats. Major entities like the United States FTC and European Commission have been quick to place these powerhouses under a critical legal lens, meaning this may not be the last of the ongoing woes faced byAppleand others.
Apple
Apple began as a small tech company that evolved into one of the most innovative and well-known brands in all of computing and mobile phones. Their iPhone sees a massive following and they’ve since spread their umbrella to include streaming services and original productions.
