Apple's $570 million fine from the EU has triggered a sharp rebuke from the White House, which called the fine a form of economic extortion, Reuters reports.
The fine was announced on Wednesday by the European Commission, following a formal investigation into Apple's compliance with the bloc's Digital Markets Act (DMA), a landmark piece of legislation aimed at curbing the market dominance of so-called "gatekeeper" companies. According to the Commission, Apple violated the DMA by restricting developers from informing users about alternative payment options outside the App Store and by preventing the distribution of iOS apps through competing app marketplaces.
Speaking to Reuters, a spokesperson for the White House condemned the EU's actions, signaling growing transatlantic tensions over regulation of U.S. technology firms:
This novel form of economic extortion will not be tolerated by the United States. Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society.
Apple said it plans to appeal the decision. The company called it "another example of the commission unfairly targeting the company" with actions that are "bad for the privacy and security of our users." The penalties represent approximately 0.1% of each company's annual revenue, which is significantly below the potential maximum fine of 10% allowed under the DMA.
The ruling comes amid ongoing trade negotiations between the EU and the U.S., which could potentially add another layer of complexity to transatlantic tech regulations.
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