Apple is currently facing several “very serious” issues under the European Union’s Digital Markets Act (DMA), according to Margrethe Vestager, the bloc’s competition chief. The investigation was initiated in March, along with probes into Alphabet and Meta, under the newly applicable tech legislation. One of the main concerns raised about Apple is whether the company is preventing businesses from informing users about alternative, cheaper product options or subscriptions outside of the App Store.
Vestager emphasized the importance of the issues surrounding Apple, considering that a significant amount of business activities take place through the App Store and associated payment mechanisms. Despite her surprise at suspecting Apple of non-compliance, Vestager made it clear that enforcement will be carried out with the same level of priority as with any other business. The conclusions of the probe are expected to be disclosed in the near future, revealing the potential consequences for Apple.
Recent reports suggested that the EU is preparing charges against Apple under the DMA, with potential fines of up to 10% of the company’s global annual turnover. These charges, if pursued, would be preliminary, allowing Apple the opportunity to address the concerns raised by regulators. Although the authenticity of the report has not been independently confirmed, the implications of breaching DMA rules could be significant for Apple.
Margrethe Vestager, during her tenure as the EU’s Competition Commissioner, has been actively focused on curbing the dominance of major technology companies in order to create a more level playing field within the EU. She has been involved in extensive investigations into tech giants like Google’s parent company, Alphabet, resulting in substantial fines. As Vestager nears the end of her term, various probes, including one into Microsoft’s business practices related to its video and chat app Teams, are still ongoing.
With her upcoming departure from office, Vestager expressed anticipation for a period of rest after a decade of intense work. She humorously mentioned the possibility of needing to sleep for a month to recover from the hypercharged nature of her responsibilities. This statement indicates the level of dedication and commitment she has shown throughout her time as the EU’s Competition Commissioner.
Overall, Apple’s current situation under the EU’s regulatory scrutiny highlights the evolving landscape of Big Tech oversight and the challenges faced by major companies operating within the digital market. The outcome of the ongoing probe will not only impact Apple’s business operations but also set a precedent for how other tech giants may be regulated in the future.
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