Apple’s lockdown gets an EU slapdown
Bad news for Apple: the European Commission this week ruled it was in breach of European Union competition laws.
In a ‘preliminary view’, the Commission accused Apple’s App Store of violating the EU’s new Digital Markets Act (DMA), the latest move in a long-running dispute between the pair. As reported by TechCentral, this could see Apple on the hook for billions in fines for preventing app developers from freely steering consumers to alternative channels for offers and content.
Under the DMA, developers selling software in Apple’s App Store should be able to, at no cost, inform customers of alternative purchasing methods, steer them to those methods and allow them to make purchases. As things stand, the Commission has said that Apple “is in breach of the DMA” on these points. Apple now has 12 months to appeal the decision before a final ruling is made. If unsuccessful Cupertino could be forced to hand over 10% of its worldwide global turnover, which could amount to about €40 billion. Of course, the chances of a fine this severe ever being applied, or paid, are slim.
Nevertheless, the fact that the Commission ruled against the iPhone maker demonstrates both sides are digging in for a long fight.
Posting on social network X, formerly known as Twitter, EU Commissioner for the Internal Market Thierry Breton said: “For too long @Apple has been squeezing out innovative companies – denying consumers new opportunities & choices.”
One more thing
The Commission has also opened a non-compliance procedure against Apple, the third so far, in relation to the rules the company applies to third party app stores, which has been permitted only in response to the DMA.
The EU’s latest move came just days after Apple put the European launch of its artificial intelligence services on the long finger. Last week Apple said that Phone Mirroring, SharePlay Screen Sharing enhancements, and Apple Intelligence, would not be available in the EU, claiming that EU law “could force us to compromise the integrity of our products in ways that risk user privacy and data security”.
The features will instead launch in 2025, presumably “user privacy and data security” will no longer be under threat by then.
This is not the first tantrum Apple has had about the DMA. Earlier this year the company announced it was canning support for Web apps in the EU, before eventually backing off. Notably, in this case Apple also claimed it needs to keep rivals’ grubby mitts off its devices due to potential privacy and security issues.
The crux of the issue appears to be that the EU’s declaration of Apple as a ‘gatekeeper’ due to its massive market share means the EU specifically observes he company’s actions to ensure fairness in business practices, including compatibility with competing products, and, to some extent anyway, avoiding self-preferencing. This, the walled fruit garden does not like.
Apple is not alone, of course. Other digital giants including Google parent company Alphabet, Facebook parent company Meta, and TikTok parent company ByteDance, Amazon and Microsoft have also been declared gatekeepers and duly regulated.
While the rest of the bunch have complained less (and would not be sorry to see Apple have its wings clipped), it is more than likely that, in its shoes, each of them would take a similar view to Apple. Which is to say: “We like money and we will do what we like, thank-you-very-much”.
Indeed, Alphabet and Meta are also under the spotlight for suspected DMA breaches, indicating a growing concern in Europe about the power of the digital giants.
Both sides, naturally, claim they are on the side of the consumer, but the Commission’s stance is rather more convincing. In spite of the sulking sounds – and, on social media, howls of outrage – emanating from across the Atlantic, it is hard to escape the conclusion that the EU is in the right: Big Tech is simply too powerful.
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