How the EU's new big tech antitrust laws will hit Apple

Posted:
in General Discussion edited July 2022
The Digital Markets Act and Digital Services Act focused on Big Tech will be enforced in the European Union in early 2023. Here's how they will affect Apple and other Silicon Valley tech giants.

European Union flags
European Union flags


Earlier in July, the European Parliament agreed on two new sweeping legislative packages -- the Digital Markets Act and the Digital Services Act -- that would introduce a slew of antitrust regulations in the EU. The regulations are tailor-made to rein in the power of tech giants like Apple, Google, Meta, and Amazon.

On July 19, the European Council adopted the Digital Markets Act rules, bringing it one step closer to fruition.

Although it isn't exactly clear how tech companies will comply with the regulations, they do outline some strict behaviors and punishments for noncompliance.

Digital Markets Act

The Digital Markets Act (DMA) is a proposal intended to place additional restrictions and mandate new frameworks for digital service "gatekeepers."

Although the DMA doesn't explicitly name Apple or any other tech giant, they will fall into the category of "gatekeepers" because of their ownership and operation of platforms with many users, their annual revenue in the European Union, and their "entrenched and durable position." The DMA will outline new obligations for "gatekeepers," as well as punishments if they don't adhere to the new regulations.

Some of the provisions of the DMA, for example, will force Apple to:

  • Allow third-party app stores and side-loading on iPhone

  • Allow developers to use third-party payment platforms

  • Allow developers to integrate their apps directly with gatekeeper services, such iMessage

  • Allow users to set a voice assistant other than Siri as their default

  • Share performance and marketing data with developers and competitors

  • Allow developers to access hardware features like "near-field communication technology, secure elements and processors, [and] authentication mechanisms

Additionally, the DMA will prohibit developers from giving their own apps or products preferential treatment. In Apple's case, this could translate to forbidding the company from highlighting its own services like Apple Music and Apple Arcade on the App Store.

The DMA is likely to force change in a range of Apple services.
The DMA is likely to force change in a range of Apple services.


The DMA will also place restrictions on big tech giants mandating default services on its devices and requiring app developers to use certain browser engines, services, and frameworks. Again, in Apple's case, this could translate to iOS browsers that aren't based on WebKit or third-party phone apps with deep hardware and software integrations.

Companies that violate the rules of the DMA could face a fine of up to 10% of their annual global turnover.

Digital Services Act

The Digital Services Act (DSA) is another legislative package that will place restrictions on how tech giants operate. In this case, the DSA focuses much more on online content and moderation.

In a nutshell, the DSA puts additional responbiltiy on online platforms and tech companies to police content -- including both reporting and taking down illegal content.

According to the provisions of the DSA, regulations will be applied on companies in tiers. The largest firms -- including those with more than 45 million active users across Europe -- will see the biggest effects. Apple falls into that category.

The DSA will require large platforms to carry out an annual analysis on reducing risk associated with "dissemination of illegal content, adverse effects on fundamental rights, manipulation of services having an impact on democratic processes and public security and adverse effects on gender-based violence, and on minors and serious consequences for the physical or mental health of users."

Online marketplaces will also be subject to new transparency rules, and platforms will be required to allow users to opt out of algorithm recommendations that are based on their history and information.

The DSA could potentially have implications for illegal content in iCloud.
The DSA could potentially have implications for illegal content in iCloud.


Additionally, the DSA will ban "dark patterns," or misleading user interfaces such as those that coerce users into subscribing to a platform or making an in-app purchase.

Since Apple doesn't make a search engine or social media platform, it's likely that most core elements of its business model will remain unchanged under the DSA rules. The DSA is much more likely to have a major impact on companies like Meta and Google.

Companies that violate the rules of the DSA could face a fine of up to 6% of their annual global turnover.

When these laws will actually affect Apple

Although approved by the European Parliament and the Council of the European Union, the DMA still needs to be signed by the President of the European Parliament and the President of the Council. That's a formality, however, and is nearly guaranteed to happen soon.

Once that's formalized, the new law is expected to go into effect in early 2023.

The DSA has yet to receive European Council approval, but that's expected to happen by September 2022. Like the DMA, the regulations introduced by the DSA legislative package will take effect six months afterward. Based on the timeline, it'll also take effect in the first half of 2023.

It isn't clear how Apple will change its business to comply, but it's likely that it'll attempt to change as little as possible.
It isn't clear how Apple will change its business to comply, but it's likely that it'll attempt to change as little as possible.


Before that happens, it's very likely that companies like Apple and others will adopt changes to get ahead of the regulations. However, it's also likely that the companies will seek to change their core business models as little as possible.

Enforcement is also a concern. While tech giants will be subject to the new laws, enforcement could be hampered by the limited resources of the regulators.

For example, the European Commission has moved to establish a task force of about 80 officials -- a number critics say is too few.

Another thing to keep in mind is that why the laws will only apply to business practices in the European Union, they will have resounding effects in other markets like North America and Asia. The impact of the European Global Data Protection Regulation (GDPR), for example, is felt across the web, even in the U.S.

What remains to be seen, of course, are the specifics of how Apple will actually change its business models to adhere to the DMA and DSA.

Read on AppleInsider
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Comments

  • Reply 1 of 25
    blastdoorblastdoor Posts: 3,520member
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    watto_cobra
  • Reply 2 of 25
    sphericspheric Posts: 2,663member
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    edited July 2022 Ofer
  • Reply 3 of 25
    aderutteraderutter Posts: 620member
    I wonder if Apple will end up allowing 3rd party app-stores but still be allowed to charge said 3rd party stores 15% commission on all transactions therein for platform access… e.g. Epic Store having to pay Apple for the privilege of being on iOS. 

  • Reply 4 of 25
    rob53rob53 Posts: 3,282member
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    Don't be naive. What every country wants is the ability to infect every single computing device with nation-owned software to monitor everything a person does. The people who understand this rightfully call it spyware. Nations saying they're trying to reign in tech companies is what they're trying to make people believe while forcing these tech companies to open up their systems to anyone's software is their trojan horse. Read some history to understand what my comment means. As for Apple's lockdown, I'm not sure it will really help stop countries from invading our devices but it is a good attempt. The problem is, Lockdown really locks an iPhone down to the point where it's almost not usable. What this is demonstrating is how far Apple has to locks things down to make them anywhere near secure from state-owned hacking activities. 
    danoxwatto_cobra
  • Reply 5 of 25
    Makes you wonder why the EU didn't just demand that Apple/Google share all of their internal R&D with Nokia/Ericsson or face a 100% global revenue fine. It wouldn't be any less ridiculous than a lot of this stuff. 
    lolliverwatto_cobradanox
  • Reply 6 of 25
    sphericspheric Posts: 2,663member
    rob53 said:
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    Don't be naive. What every country wants is the ability to infect every single computing device with nation-owned software to monitor everything a person does. The people who understand this rightfully call it spyware. Nations saying they're trying to reign in tech companies is what they're trying to make people believe while forcing these tech companies to open up their systems to anyone's software is their trojan horse. Read some history to understand what my comment means. As for Apple's lockdown, I'm not sure it will really help stop countries from invading our devices but it is a good attempt. The problem is, Lockdown really locks an iPhone down to the point where it's almost not usable. What this is demonstrating is how far Apple has to locks things down to make them anywhere near secure from state-owned hacking activities. 
    I'm aware of the desire of various secret services to get in people's phones, and I'm aware of iOS 16's lockdown functionality. 

    None of that has the slightest to do with the subject of this article. I was trying to figure out why the poster was making a completely unrelated comment. 
    edited July 2022 Oferavon b7gatorguywatto_cobraStrangeDays
  • Reply 7 of 25
    JFC_PAJFC_PA Posts: 944member
    Side loading is an open door for spyware, state sponsored and otherwise. 
    jony0lolliverwatto_cobrawilliamlondonStrangeDaysdanox
  • Reply 8 of 25
    gatorguygatorguy Posts: 24,563member
    JFC_PA said:
    Side loading is an open door for spyware, state sponsored and otherwise. 
    Apps don't sideload by themselves. If you only use the AppStore, alternate sources have zero danger for you. 
    edited July 2022 muthuk_vanalingambonobob
  • Reply 9 of 25
    mjtomlinmjtomlin Posts: 2,686member
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 

    Not spyware, and far from it. In fact, the system Apple designed was to allow your photos to be encrypted before they're stored on Apple's servers, making sure no one (not even Apple) has access to them except you. Your photos are only "scanned" before you upload them to iCloud Photos. Currently all other online storage services can only scan your (unencrypted) photos after they're uploaded to their servers. So other than Apple being transparent about what they're doing, I don't understand why people are in an uproar over it.

    US child pornography laws state that online storage services can be held liable for "distribution" of pornographic material even if they didn't know a user uploaded it. Therefor they all have to scan your photos once they're on their servers and report it to the appropriate agencies, meaning those photos can not be encrypted beforehand. Apple's system works around that and it does so without them actually being able to hand anything over.
    sphericwatto_cobraStrangeDays
  • Reply 10 of 25
    sphericspheric Posts: 2,663member
    Yep. I was trying to figure out what the hell Blastdoor thought s/he was talking about. 
    watto_cobraStrangeDays
  • Reply 11 of 25
    jony0jony0 Posts: 380member
    gatorguy said:
    JFC_PA said:
    Side loading is an open door for spyware, state sponsored and otherwise. 
    Apps don't sideload by themselves. If you only use the AppStore, alternate sources have zero danger for you. 
    My main concern about side loading security is 'Man in the Middle' infectes versions of popular So Me software or other communication trojans that could potentially send malware to people with the real legit App Store version.
    watto_cobraStrangeDays
  • Reply 12 of 25
    KTRKTR Posts: 280member
    I say apple should pull out of the EU.  Then every one loses out.  Even government agency
    lolliverMisterKit
  • Reply 13 of 25
    blastdoorblastdoor Posts: 3,520member
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    I’m talking about the EU forcing apple to allow deeper access to the iPhone through multiple vectors, all of which can allow for more nefarious software. The EU is mandating it, hence EU spyware. 
    watto_cobradanox
  • Reply 14 of 25
    davidwdavidw Posts: 2,096member
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    There is no UNITED STATES law that requires Apple or any other entity that stores or transfers consumers data on their internet cloud servers, to scan for CSAM. NO US LAW WHAT SO EVER. The only US law is that any entity storing or transferring consumers data must report any CSAM material, if they know about it or are informed about it.

    https://crsreports.congress.gov/product/pdf/LSB/LSB10713

    >Currently, nothing in federal law requires providers to monitor their services or content for CSAM in the first instance. Under the law, although providers must report CSAM to NCMEC, which must then make the reports available to law enforcement, providers are not obligated to “affirmatively search, screen, or scan for” these violations.<

    In the US, thanks to our US Constitution, it would be very difficult if not impossible, for the Feds to pass any laws that requires an entity to search its customers data for illegal material or activity, without probable or reasonable cause. It's not a matter of 1st Amendment right to free speech but 4th Amendment right to privacy and from unreasonable search without a warrant.  

    I believe this is also currently true in the EU ( not that the EU must abide by the US Constitution) because the EU tend to care more about the protection of its citizens privacy. But that might be changing soon. It seems the EU might only care more about its citizens privacy from other third party entities and not from the government itself.

    https://www.cpomagazine.com/data-privacy/proposed-eu-law-requiring-csam-scanning-could-put-an-end-to-encrypted-messages/

    >The European Commission is considering a new child sexual abuse material (CSAM) law that could undermine all encrypted messages if enacted. If it were to become EU law, the proposal would require that all messaging services scan all of their messages for potential CSAM materials, something that would either require a removal of end-to-end encryption or the insertion of backdoors.< 






    edited July 2022 muthuk_vanalingamgatorguywatto_cobra
  • Reply 15 of 25
    sphericspheric Posts: 2,663member
    blastdoor said:
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    I’m talking about the EU forcing apple to allow deeper access to the iPhone through multiple vectors, all of which can allow for more nefarious software. The EU is mandating it, hence EU spyware. 
    Ah yes. Anticompetitive measures necessarily equate to spyware. 

    EU spyware, nothing less.
    edited July 2022
  • Reply 16 of 25
    danoxdanox Posts: 3,236member
    rob53 said:
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    Don't be naive. What every country wants is the ability to infect every single computing device with nation-owned software to monitor everything a person does. The people who understand this rightfully call it spyware. Nations saying they're trying to reign in tech companies is what they're trying to make people believe while forcing these tech companies to open up their systems to anyone's software is their trojan horse. Read some history to understand what my comment means. As for Apple's lockdown, I'm not sure it will really help stop countries from invading our devices but it is a good attempt. The problem is, Lockdown really locks an iPhone down to the point where it's almost not usable. What this is demonstrating is how far Apple has to locks things down to make them anywhere near secure from state-owned hacking activities. 
    Usable as a phone, music player, text and email and a occasional browser with security what else do you need 99% of the time, particularly the first two items….the other stuff is noise.
    edited July 2022
  • Reply 17 of 25
    KTRKTR Posts: 280member
    Next thing you know.  They will try to force apple to license it’s operating systems to other device makers.  But then again.  These new BS RULES could benefit apple.  Since apple owns and develop its own OS.  They would have more control over its hardware software combo.  
  • Reply 18 of 25
    Sell an EU model with nothing on it except the Settings app. Users can go download the app store they want, the phone app they want, the messaging app they want, the browser they want. They'll have to connect it to a computer to side load at least the app store or browser to get started. But it'll be "fair" and nobody will have an advantage.
  • Reply 19 of 25
    StrangeDaysStrangeDays Posts: 13,033member
    rob53 said:
    spheric said:
    blastdoor said:
    I wonder if Lockdown mode is an example of how apple will respond. That is — use enhanced security/privacy modes to allow users to turn all that EU spyware off
    What EU spyware? 

    Which article have you been reading? Because it certainly hasn't been this one.

    Edit: or are you talking about the photo analysis to catch child porn? Apple built that to comply with a UNITED STATES law. 
    Don't be naive. What every country wants is the ability to infect every single computing device with nation-owned software to monitor everything a person does. The people who understand this rightfully call it spyware. Nations saying they're trying to reign in tech companies is what they're trying to make people believe while forcing these tech companies to open up their systems to anyone's software is their trojan horse. Read some history to understand what my comment means. As for Apple's lockdown, I'm not sure it will really help stop countries from invading our devices but it is a good attempt. The problem is, Lockdown really locks an iPhone down to the point where it's almost not usable. What this is demonstrating is how far Apple has to locks things down to make them anywhere near secure from state-owned hacking activities. 
    Every country wants to install spyware on every device, huh? Sweet completely made up conspiracy lacking in any sustaining evidence, bro. Other than China and Russia, the claim that this is the end goal of all states is simply false.
    edited July 2022 gatorguytmayjony0
  • Reply 20 of 25
    StrangeDaysStrangeDays Posts: 13,033member
    gatorguy said:
    JFC_PA said:
    Side loading is an open door for spyware, state sponsored and otherwise. 
    Apps don't sideload by themselves. If you only use the AppStore, alternate sources have zero danger for you. 
    Too bad it’s really not difficult to trick non-techies like the elderly into installing junk just like that, in the name of “free recipes” or “technical support”. I’ve had to help family members who fell for them on their PCs; never had to worry about their iPhones. Until now. 

    Creating this new attack vector is precisely while Apple doesn’t want side-loading. 
    williamlondontmayjony0
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