Apple faces potential $40 billion fine from EU over iPadOS 'Gatekeeper' role – Android Headlines

The European Union (EU) has been kind of strict on Apple over some of its marketing techniques. The authority previously took note of the absence of a USB Type-C port on iPhones and forced Apple to implement it. EU also ordered Apple to allow sideloading apps on iOS. Now according to a recent report, Apple may face a huge fine from the EU over its gatekeeper role with iPadOS.

EU may slam Apple with $40 billion fine for making iPadOS a Gatekeeper

We all know how popular the iPads are. The only proper competition to Apple in the field of tablets would be Samsung. This makes Apple a dominator in certain ways and this could lead to some not-so-great moves, which the EU doesn’t want. The authority terms this under its law as “gatekeeper,” and it may impose certain rules and fines on any of the brands categorized under this.

The European Union has implemented a new law known as the “Digital Markets Act (DMA)” this year. According to this law, the authority now categorizes some well-known brands like Google, Microsoft, Apple, Amazon, Meta, and TikTok as “gatekeepers.” This means that they have the power to control access to their platforms.

The term “gatekeepers” in the DMA refers to online products, platforms, or brands that wield significant market dominance and act as control points for other businesses to access users or customers. These gatekeepers hold substantial market power and can dictate terms and conditions that impact the competitiveness of the digital ecosystem.

Why iPadOS is marked as a “gatekeeper”?

The iPadOS remains under the “gatekeeper” category because of its dominance in the market. Its design not only controls the user’s actions but also affects the overall competition, giving it an edge in the category.

If we look further into the law, it allows the EU to force certain regulations on the products or the brands labeled as “gatekeepers.” This should be done in order to remove the unwanted monopoly in the market and to ensure fairness among all the products. In certain situations, authorities may fine the brands as much as 10% of their global annual turnover. Which, in the case of Apple, is around $40 billion.

Apple has six months to comply with the act, or they may end up facing a huge fine and maybe some other legal consequences as well.

Apr 29, 2024