Apple set to stave off EU fine into browser options, sources say

By Foo Yun Chee

BRUSSELS (Reuters) - Apple is set to stave off a possible fine and an EU order over its browser options on iPhones after it made changes to comply with landmark EU rules aimed at reining in Big Tech, people with direct knowledge of the matter said on Tuesday.

The European Commission, which launched an investigation in March last year under the Digital Markets Act (DMA), is expected to close its investigation early next week, the people said.

It had been concerned that Apple's design of the web browser screen on its iPhones may hinder users from switching to a rival browser or search engine.

The EU decision will come amid tensions with U.S. President Donald Trump who has threatened to slap tariffs against countries that levy fines against U.S. companies.

The EU competition enforcer declined to comment.

The DMA sets out a list of dos and don'ts for Big Tech, aiming to make it easier for people to move between competing online services like social media platforms, internet browsers and app stores and open up space for smaller rivals to compete.

Companies risk fines as much as 10% of their global annual sales for DMA breaches.

The Commission's decision to close the investigation early next week will come at the same time as it hands out fines to Apple and Meta Platforms for DMA violations and orders to comply with the legislation, the people said.

In this second Apple case, the issue is whether the company imposes restrictions that hinder app developers from informing users about offers outside its App Store free of charge.

The Meta case concerns its no-ads subscription service in Europe in November 2023 that has triggered criticism from rivals and users, with regulators saying the company should offer free alternative options.

(Reporting by Foo Yun Chee, Editing by Louise Heavens)