The European Union (EU) is intensifying its regulatory actions against Apple to ensure that the tech giant meets the Digital Markets Act (DMA). The move comes after persistent concerns about Apple’s business practices, which EU officials say have stifled innovation and limited consumer choice. According to the EU, the level of compliance with the Digital Markets Act must be satisfactory.
Contents
Strong criticism from the EU Commissioner
On June 24, EU Internal Market Commissioner Thierry Breton expressed strong criticism of Apple over the X platform. He accused the company of “squeezing out innovative companies and depriving consumers of new opportunities and options for a long time ”. Breton’s comments underline the EU’s commitment to enforcing its strict digital market regulations.
Digital Markets Law and compliance issues
The Digital Markets Act, the cornerstone of the EU’s strategy to regulate major technology companies, aims to ensure fair competition and consumer rights within the digital economy. Under the DMA, companies like Apple must allow third-party app stores on their devices and eliminate restrictive fees that hinder competition.
Earlier this month, EU Competition Commissioner Margrethe Vestager highlighted the significant challenges Apple faces in aligning with the DMA. In an interview with foreign media, Vestager described the problems as “many of them very serious” and noted that Apple’s recent measures do not meet the requirements of the DMA.
Investigation into Apple practices
The European Commission launched an investigation into Apple’s compliance with the DMA in March. The investigation focuses on whether Apple’s market adjustments meet new regulatory standards, particularly regarding the provision of third-party app stores. The DMA requires that developers be able to offer their applications without incurring exorbitant fees.
Apple’s response included implementing tweaks in the iOS 17.4 update. However, these changes have not satisfied EU regulators. A critical point of contention is Apple’s imposition of a “basic technology fee” of €0.50 for each new download after an app has been installed more than a million times in a year. This fee, according to Vestager, does not align with DMA requirements.
Gizchina News of the week
Regulatory reaction and future implications
Vestager’s recent interview emphasized the seriousness of the compliance issues, stating: “During our investigation, we found that there are many problems with Apple’s new rules, and the problems are very serious. “These issues are shocking, the severity exceeds our expectations and they obviously do not meet the standards.” Such strong language indicates the EU’s deep discontent with Apple. It also indicates the possibility of significant regulatory action against the company.
Additionally, Apple’s announcement last Friday adds another layer of complexity. The company revealed that due to regulatory issues, several features:Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing will not be available to EU users when iOS 18 and macOS Sequoia are released this fall. This development signals potential disruptions for Apple users in the EU. It also highlights the broader impact of regulatory compliance on product features.
Apple’s perspective on the Digital Markets Act
Apple’s outlook on the Digital Markets Act (DMA) is a combination of cautious compliance and strategic adaptation. Apple has publicly stated its commitment to complying with the DMA, emphasizing that its goal is to comply with legal requirements while maintaining the user experience and security standards its customers expect. In a hearing, Apple’s lawyer says the company follows both legal compliance and its long-standing values, prioritizing user experience even as it opens its ecosystem to greater competition.
Apple’s compliance strategy includes reducing App Store fees from 30% to a range of 10-17%, depending on the payment method used. This reduction should help developers retain more revenue, which could drive further innovation and development within the EU market.
Conclusion
Increased regulatory scrutiny by the EU reflects a broader effort to ensure that tech giants like Apple operate within fair and competitive frameworks. As the EU continues to enforce the Digital Markets Act, Apple may need to make more substantial adjustments to its business practices to fully comply with European regulations. The unfolding situation highlights the ongoing tension between major technology companies and regulatory bodies striving to protect consumer interests and promote innovation.