Apple, the tech giant, has found itself in hot water with the European Union for allegedly breaking the newly implemented digital markets rules. The European Commission accused Apple of restricting developers from direct communication with users and promoting their offers, a practice known as anti-steering. Margrethe Vestager, the EU’s competition chief, expressed concerns that Apple hinders steering, which is crucial for app developers to have independence from app store gatekeepers and for consumers to access better offers.
Thierry Breton, the European commissioner for the internal market, condemned Apple for stifling innovation and limiting consumer choices by squeezing out innovative companies. These charges by the European Commission are considered as preliminary findings, and Apple now has the opportunity to respond. If an agreement is not reached, the EU has the authority to impose fines, which could amount to up to 10 percent of the company’s global turnover by March 2025.
Tensions between Apple and the EU have been escalating over the past few months. A formal investigation into Apple’s compliance with the EU’s competition rules was initiated in March. While similar investigations were also launched against Meta and Google’s parent company, Alphabet, Apple has been under the spotlight for its treatment of European developers. Developers have criticized Apple’s business terms as abusive, extortionate, and unfairly punitive.
Apple’s spokesperson, Rob Saunders, defended the company’s practices, stating that all developers on the App Store have the option to utilize the introduced capabilities, such as guiding app users to complete purchases on the web at competitive rates. However, Apple recently announced that it would not introduce its artificial intelligence features in the EU due to regulatory uncertainties. Saunders raised concerns about the interoperability requirements of the DMA compromising user privacy and data security.
Apple is not the only tech company attributing delays in rolling out new features to the new EU rules. Google postponed the EU launch of its ChatGPT rival, Bard, last year, while Meta halted plans to train its AI on European users’ Facebook and Instagram data. These decisions have been met with criticism, with companies highlighting the setback for European innovation, competition in AI development, and the delay in bringing AI benefits to people in Europe.
Apple’s confrontation with the European Union over alleged violations of digital markets rules highlights the growing scrutiny faced by big tech companies regarding competition practices and consumer protection. These charges reflect broader concerns about the power wielded by tech giants and the need for regulatory interventions to ensure fair competition and innovation in the digital marketplace.
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