EU launches mass DMA violation probes against Apple, Google, and Meta
Using its new powers under the Digital Markets Act, the European Union has announced sweeping probes into US Big Tech, including multiple investigations of Apple.
European Union flag with App Store logo superimposed
As of early March 2024, Apple has enabled the creation of third-party rivals to its own App Store, specifically and solely because it has been forced to under the EU's Digital Markets Act (DMA). As part of that same DMA, the EU now has the authority and regulatory powers to investigate qualifying firms and, if it sees fit, apply steep fines for any perceived breaches of the law.
Now the EU has formally announced the start of several such investigations, covering Apple, Meta, and Google's parent company Alphabet, with some elements also pertaining to Amazon's dealings with some of these firms. For Apple, the investigation covers:
- App Store steering rules
- Browser choice screen
- Apple's new fee structure for alternative app stores
"Today, the Commission opens five non-compliance investigations under the Digital Markets Act (DMA)," said Margrethe Vestager, Executive Vice-President in charge of competition policy. "We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA."
The EU's announcement says that this suspicion of the companies failing to comply with the laws, follows its own analysis of compliance measures, but also "feedback from stakeholders." While not named, those stakeholders will include the likes of Spotify and Epic Games, who have both publicly reported having complained to the EU.
In a statement to AppleInsider and other venues, the company says that it is in compliance with the new law.
"We're confident our plan complies with the DMA, and we'll continue to constructively engage with the European Commission as they conduct their investigations. Teams across Apple have created a wide range of new developer capabilities, features, and tools to comply with the regulation. At the same time, we've introduced protections to help reduce new risks to the privacy, quality, and security of our EU users' experience.Throughout, we've demonstrated flexibility and responsiveness to the European Commission and developers, listening and incorporating their feedback."
The EU's next steps
Apple, and all Big Tech "gatekeepers" have now also been ordered to retain certain documentation that can be used to monitor the effectiveness of their implementation of the DMA regulations.
"The Commission has opened proceedings against Apple regarding their measures to comply with obligations to enable end users to easily uninstall any software applications on iOS, easily change default settings on iOS," says the EU, "and prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones."
This investigation into Apple has officially started on March 25, and the EU says that it aims to conclude all such probes within 12 months. After that, it will inform Apple and the others of the steps it will require them to take in order to remedy any perceived non-compliance.
The EU is empowered to impose one-off fines of up to 10% of a company's worldwide turnover -- and 20% for repeated infringements. The European Commission can also force companies to sell off their businesses, or part of them.
Read on AppleInsider
Comments
Alphabets investigation will presumably be their continuing services self-preference, specifically that in some EU countries they still offer a Google Flights tab.
Otherwise, who knows until details are released over the next several days.
Current pricing is based on current rules. Dramatically change the rules, change the pricing
And Apple should let consumers know this is the reason they are doing it. They can literally put a “DMA Compliance” line item in the online checkout.
Yeah, Apple may lose some share. But the EU is becoming less relevant every year
If you don't like how Apple or Google does things with THEIR phones, how about an EU company makes their own OS and sell their own phones!!! Oh wait, regulations is so insane, it's almost impossible for startups in the EU. Where are they? It's pretty rare. Everything they keep doing is just locking in place these U.S. companies because no one in the EU can afford to do anything. It takes a lot of money and TIME. Better for the EU to just steal it from American companies.
“gee, let’s build a trap for successful American tech companies and then attack them when their maimed by it. How dare they try to survive”
Funny how the dma is so recent, initially going back to 2022, but really taking effect just last year and already it’s added to in order to single out Americas most successful tech company. Then reinterpreted however they want, even going so far as to have a dma author give a public statement on why apple is in violation before any “probe” was done. And that’s being generous to their idea of investigation. Previous public statements indicate it really only takes European tech companies voicing disagreements to whatever apple does (which is what competitors do-try to take you down, set themselves up on your corpse, etc.). It’s a really rather embarassing display to see how remedial the EU’s IQ is. Incompetence with that kind of authority is devastating. The worst part is when it’s coupled with pride, so any mistake will be doubled down on rather than fixed. I feel very sorry for Europeans - and even more sorry for Apple. Sucks when evil wins.
It’s pretty clear that the ultimate goal of the EU is to drive all of these highly successful US businesses to say F-It to doing any business in the EU. This will allow them to install their own homegrown EU businesses to serve the needs of EU citizens. I’m sure EU citizens will be more than happy to own a Europhone, gather all of their apps via the EuroStore, browse the web using the Eurobrowser, and hook up with their fellow Eurocitizens using Eurobook and Eurotweet.
We need some Realpolitik and for Apple to navigate the real world.
I can’t imagine that Apple legal didn’t structure everything according to the letter of the law — the companies complaining are just doing what they do best, not understanding the legality of what Apple implemented. And the EU continues to not understand any of the technology from any of these companies. They don’t appreciate it because tech innovation doesn’t come out of the EU. They just don’t get it.