Apple is on the verge of becoming the first tech company fined under the European Union’s Digital Markets Act (DMA), following allegations that its App Store rules restrict competition. Reports indicate the European Commission is preparing to penalize Apple for its so-called “anti-steering” policy, which limits app developers’ ability to direct users to purchase options outside Apple’s ecosystem, such as less expensive subscriptions via external websites. This rule is especially contentious because it requires developers to either follow Apple’s payment system (and pay its 30% commission) or risk losing access to App Store users.

The investigation originally stemmed from a 2019 complaint by Spotify, which argued that Apple’s practices unfairly disadvantaged other streaming services. After extensive review, the Commission sided with Spotify earlier this year, stating that Apple’s rules created artificial barriers and forced competing developers to raise their prices. This violation of the DMA could lead to a fine as high as 10% of Apple’s global revenue, or about $38 billion, should the EU decide to impose the maximum penalty. Apple may face even higher fines if it’s deemed a repeat offender, with penalties potentially reaching 20% of global revenue in such cases.

Apple has responded by saying it made adjustments to comply with the DMA, yet the EU has reportedly found those changes insufficient. Margrethe Vestager, the EU’s Commissioner for Competition, may issue the final ruling before she steps down from her post. The case could mark a significant shift in how major tech platforms are regulated in Europe, as the EU seeks to curb the market power of digital “gatekeepers” like Apple, Google, and Meta. Other major tech firms may also face scrutiny under the DMA as the EU continues to enforce competitive market standards across its 27 member states.