Apple is facing significant challenges in complying with the European Union’s (EU) regulations aimed at curbing the influence of big tech companies. European Competition Commissioner Margrethe Vestager highlighted these issues during an interview with CNBC, following reports that European regulators are preparing to address Apple’s non-compliance with the Digital Markets Act (DMA).
In March, the European Commission launched an audit of Apple, Alphabet, and Meta to determine their adherence to DMA requirements. The review revealed that Apple has some notable compliance issues. Specifically, Apple does not permit application developers to adequately advertise the option of purchasing digital products or subscriptions outside the App Store at reduced prices, thus avoiding Apple’s commission fees.
Serious Compliance Concerns
“We have a number of problems with Apple; I consider them very serious,” Commissioner Vestager stated. “I was very surprised that we had such problems with Apple not complying with the law. Apple is very important because businesses actively use the App Store and payment mechanisms, and we did not expect this from this company. Of course, we will ensure compliance with the law with the same highest priority as with any other business.”
The results of the audit, she mentioned, will be published soon. We’ll keep you updated as more information becomes available.
Potential Consequences and Broader Impact
Earlier reports indicated that Brussels intends to charge Apple under the DMA based on the audit results. These allegations will be preliminary, giving Apple the opportunity to address and alleviate regulators’ concerns. Should Apple be found in violation of the DMA requirements, it could face a fine of up to 10% of its total global turnover.
Vestager, who has served in her role for a decade, has made it a priority to limit the dominance of big tech companies. She has led significant investigations into tech giants, including Alphabet, and has imposed billions of dollars in fines. Although she plans to leave her position in the foreseeable future, numerous investigations are still ongoing, including an audit of Microsoft concerning the integration of the Teams corporate messenger into the Office suite, notes NIXsolutions.
The European Commission’s actions against Apple underscore the EU’s commitment to enforcing compliance and maintaining a fair competitive landscape in the digital marketplace. We’ll keep you updated as this situation develops.