Apple is reportedly going to avert a potential financial penalty and a directive from the European Union (EU) regarding its browser options on iPhones, following the company's implementation of changes designed to align with the EU's groundbreaking Digital Markets Act (DMA), a report has said.
Citing sources with direct knowledge of the situation, news agency Reuters reported that the European Commission, which initiated an investigation in March of the previous year under the DMA framework, is anticipated to conclude its inquiry early next week.
Why European Commission has been probing Apple
The Commission's investigation centered on concerns regarding the design of Apple's web browser selection screen on iPhones, which regulators feared could impede users from seamlessly transitioning to competing browser or search engine alternatives.
The emphasised said that the forthcoming EU decision is set to occur amidst heightened tensions with US President Donald Trump, who has publicly threatened to impose tariffs on nations that levy fines against American corporations.
The DMA establishes a comprehensive set of regulations for major technology companies, aiming to facilitate smoother transitions between competing online services, such as social media platforms, internet browsers, and app stores, while also fostering a more competitive environment for smaller industry players.
Companies found in violation of the DMA risk substantial fines, potentially reaching up to 10% of their global annual sales.
The European Commission's decision to close the browser investigation early next week will coincide with the issuance of fines and compliance orders against Apple and Meta Platforms for separate DMA breaches, the report said, citing the sources.
In the second case involving Apple, the focus is on whether the company imposes restrictions that prevent app developers from freely informing users about offers available outside of its App Store. The Meta Platforms case pertains to its subscription service, introduced in Europe in November 2023, which allows users to opt out of targeted advertising.