Summary Points
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Compliance Deadline: The European Commission (EC) gave Apple less than 30 days to comply with the Digital Markets Act (DMA) after previously imposing a €500 million fine for non-compliance.
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Anti-Competitive Findings: The EC determined that Apple’s policies, including "anti-steering" rules and misleading messages about external payment links, are anti-competitive and create unnecessary obstacles for developers.
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Potential Penalties: If Apple fails to comply, it may incur significant fines, potentially up to 5% of its daily global revenue.
- Apple’s Response: Apple criticized the EC’s decision as unjustified and harmful to privacy, innovation, and competition, announcing plans to appeal before the June 22 deadline.
Apple faces renewed scrutiny from the European Commission (EC) after being fined €500 million in April. The EC asserts that Apple still violates the Digital Markets Act (DMA) and has less than 30 days to comply. The DMA mandates that tech giants like Apple must allow developers to inform users about offers outside their app stores.
Recently, the EC released a 68-page document detailing its findings. It characterized Apple’s practices as anti-competitive, highlighting the so-called “anti-steering” rules that complicate external transactions. One notable example is Apple’s use of “scare sheets.” When users attempt to access an external payment link, a warning message appears. This message reads, “You’re about to go to an external website. Apple is not responsible for the privacy or security of purchases made on the web.”
Failure to comply could lead to significant penalties, reaching up to five percent of Apple’s daily global revenue. In response, Apple expressed disappointment. The company insists that the EC’s actions threaten user privacy and security. Apple argues that the decision is detrimental to innovation, competition, and products for users.
Apple plans to appeal the EC’s decision before the June 22 deadline. The fight between Apple and the European regulators underscores the ongoing debate over regulation in the tech industry. As cities worldwide embrace digital solutions, such outcomes could reshape how tech companies operate, ensuring fair competition and enhancing consumer choice in smart urban environments.
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