Apple faces £30bn high-quality over its app retailer insurance policies

Apple could be hit with a fine of £30billion after European regulators issued a warning over its App Store policies.

The tech giant has been found to have unfairly blocked smaller companies from competing and allowing consumers to find cheaper and alternative apps.

The European Commission said its initial findings suggest Apple is in breach of the bloc’s Digital Markets Act (DMA), a new law which looks to rein in the dominance of big US tech.

Apple has a chance to appeal. A final decision on its compliance must be made by March 2025. If it is found guilty of breaching EU laws, Apple could be hit with a fine of up to 10 per cent of annual revenues – or nearly £30billion.

The commission has also revealed it is launching an investigation into the company’s compliance with the DMA over its new contract terms for third-party app developers.

Apple could be hit with a £30billion fine after being found to block smaller companies from competing and allowing consumers from finding cheaper alternative apps

The tech giant can appeal the findings by the European Commission, which if upheld could see it fined up to 10 per cent of its revenue

Thierry Breton, the European commissioner for internal market, said: ‘For too long, Apple has been squeezing out innovative companies – denying consumers new opportunities and choices.’

Apple said: ‘Throughout the past several months, Apple has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission.

‘We are confident our plan complies with the law and estimate more than 99 per cent of developers would pay the same or less in fees to Apple under the new business terms we created.’

Apple, which is worth about £2.5trillion, added that it would continue to engage with the EU.

It is not the first time Apple has been in hot water with regulators. In March, it was fined £1.5billion by the EU for stifling competition in the music streaming world.