The friction between Apple and the European Union just took another turn. The EU has charged Apple with DMA rules violations dropping the dubious distinction on Apple of being the first “gatekeeper” company to be so charged. It’s a preliminary ruling and Apple has until March 2025 to respond to this preliminary ruling.
If the charges stick, the potential remedy is for Apple to be fined up to 10 percent of its annual global revenue. quite a bite of the Apple.
This comes on the heels of last week’s pot-stirring announcement that Apple’s new, but yet unreleased and untested, Apple Intelligence features won’t be rolling out in the EU (and other markets) until next year. As I said then, this is all going to be one big negotiation with legal and political shots fired by both sides.
At the root of the charges is “steering,” which the EU sees as key to a competitive market. Bottom line, the EU wants gatekeeper companies to allow software developers to be able to “steer” potential customers to their products free from closed App Store and other gatekeeper restrictions. Apple joins Alphabet, Amazon, ByteDance, Meta and Microsoft in the EU”s list of gatekeepers.
The EU is also challenging Apple’s moves to come into compliance by charging a Core Technology Fee that most complain violates the intention to allow side loading of apps.
This will bounce back and forth over the next nine months and will probably become even more contentious given quotes like this from Thierry Breton, the EU internal market commissioner: “Apple’s new slogan should be ‘act different.’
Apple has released the following statement:
“Throughout the past several months, Apple has made a number of changes to comply with the DMA in response to feedback from developers and the European Commission. We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created. All developers doing business in the EU on the App Store have the opportunity to utilize the capabilities that we have introduced, including the ability to direct app users to the web to complete purchases at a very competitive rate. As we have done routinely, we will continue to listen and engage with the European Commission.”
The Financial Times seems to be the front lines where both the EU and Apple are waging this battle. The Verge also has a writeup on the news. I’m sure there will be more. Intelligent or not.
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