The AP is reporting that Apple is the first target of EU’s new digital competition rules aimed at big tech called the Digital Markets Act:
European Union regulators on Monday leveled their first charges under the bloc’s new digital competition rulebook, accusing Apple of preventing app makers from pointing users to cheaper options outside its App Store.
The European Commission said that according to the preliminary findings of its investigation, the restrictions that the iPhone maker imposes on developers using its mobile App Store had breached the 27-nation bloc’s Digital Markets Act.
The rulebook, also known as the DMA, is a sweeping set of regulations aimed at preventing tech “gatekeepers” from cornering digital markets under threat of heavy financial penalties. The commission opened an initial round of investigations after it took effect in March, including a separate ongoing probe into whether Apple is doing enough to allow iPhone users to easily change web browsers, and other cases involving Google and Meta.
Ted Miracco, CEO, Approov had this to say:
“Apple is likely to continue its public relations efforts to highlight the changes it has made and to argue that its practices are in line with the DMA. This includes claims that over 99% of developers would pay the same or less in fees under the new business terms. However on MacBooks, developers can distribute software directly to users without going through Apple, avoiding any fees. The 30% fee on iPhone apps is Apple’s commission for distribution through their App Store platform. This allegedly covers costs like payment processing, hosting, and review processes, yet all of these functions are safely completed by alternative solutions on the MacBook. In the end, while regulations like the DMA and DMCC aim to foster competition and fairness, the intrinsic culture of Apple and its pursuit of market dominance will ensure that the primary efforts will be at circumventing regulatory frameworks in their quest for growth.”
No wonder Apple isn’t bringing Apple Intelligence to the EU when it starts rolling out. They can’t afford to get into fights with the EU that will likely be never ending. Though the cynic in me says that’s retaliation for stuff like this. It will be interesting to see how this fight plays out because Google and Microsoft have gone up against the EU and lost. thus you have to wonder if Apple will be next.
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