Tech giant Apple recently faced charges for breaking the European Union’s new digital markets rules, making it the first big tech company to be on the receiving end of such allegations. The European Commission accused Apple of preventing developers from communicating directly with their users and promoting offers, a practice referred to as anti-steering.
According to Margrethe Vestager, the EU’s competition chief, Apple does not fully allow steering, which is essential for app developers to be less reliant on gatekeepers and for consumers to have access to better offers. The European commissioner for the internal market, Thierry Breton, expressed a more critical view by stating that Apple has been stifling innovative companies, depriving consumers of new opportunities and choices.
In response to the charges, Apple now has the opportunity to defend itself. If an agreement is not reached, the EU has the power to impose fines on Apple, amounting to up to 10 percent of the company’s global turnover by March 2025. The tensions between Apple and the EU have been escalating for a while now, with Brussels initiating an investigation into the smartphone maker’s failure to comply with competition rules.
Developers have been vocal about their dissatisfaction with Apple’s business terms, labeling them as abusive, extortionate, and unfairly punitive. The tech giant’s policies have been under scrutiny, with concerns raised about favoritism towards its own services over those of its rivals. Under the Digital Markets Act, it is illegal for big tech companies to prioritize their services in such a manner.
Apple’s spokesperson, Rob Saunders, expressed confidence in the company’s compliance with the law, stating that developers on the App Store in the EU have the opportunity to benefit from the introduced capabilities. Despite the reassurance, Apple announced that it would not release certain artificial intelligence features in the EU, citing regulatory uncertainties that could compromise user privacy and data security.
The delay in rolling out new features due to regulatory concerns is not unique to Apple, as other tech companies like Google and Meta have also blamed EU rules for similar decisions. This setback has been criticized as a hindrance to innovation and competition in the AI development sector, ultimately delaying the delivery of AI benefits to people in Europe.
The conflict between Apple and the EU underscores the challenges faced by tech companies operating in a regulatory environment that aims to promote fair competition and consumer protection. How Apple navigates these challenges and addresses the concerns raised by developers and regulators will have significant implications for the future of digital markets in Europe.