Posts tagged with "EU"

The European Commission Fines Apple Over €1.8 Billion

In a decision issued today, the European Commission leveled a fine of over €1.8 billion against Apple for preventing developers of music streaming services from letting iOS users know about subscriptions available outside their apps. After an investigation, the Commission concluded that Apple’s practices violated Article 102 of the TFEU and Article 54 of the European Economic Area Agreement.

In a forceful response, Apple pointed at Spotify as the instigator of the EU investigation and accused the EC of protectionist behavior, noting that:

Over the next eight years, and more than 65 meetings with Spotify, the European Commission has tried to build three different cases. With every pivot, they’ve narrowed the scope of their claims — but each theory has had a couple of features in common:

  • No evidence of consumer harm: European consumers have more choices than ever in a digital music market that’s grown exponentially. In just eight years, it’s gone from 25 million subscribers to almost 160 million — with more than 300 million active listeners — and Spotify has been the biggest winner.
  • No evidence of anti-competitive behavior: Eight years of investigations have never yielded a viable theory explaining how Apple has thwarted competition in a market that is so clearly thriving.

The European Commission is issuing this decision just before their new regulation — the Digital Markets Act (DMA) — comes into force. Apple is set to comply with the DMA in days, and our plans include changes to the rules challenged here. What’s clear is that this decision is not grounded in existing competition law. It’s an effort by the Commission to enforce the DMA before the DMA becomes law.

The reality is that European consumers have more choices than ever. Ironically, in the name of competition, today’s decision just cements the dominant position of a successful European company that is the digital music market’s runaway leader.

Apple has said it will appeal the fine, which was set at a level designed to “achieve deterrence.”


Apple’s iMessage Service Will Not Be Regulated under the EU’s Digital Markets Act

The EU has decided that Apple’s iMessage service is not a core platform, meaning that it will not be subject to regulation under the Digital Markets Act (DMA). Jon Porter writing for The Verge:

The decision is the culmination of a five month investigation which the Commission opened when it published its list of 22 regulated services last September. Although it designated Apple’s App Store, Safari browser, and iOS operating system as core platform services, it held off on making a final decision on iMessage until an investigation could be completed. A similar investigation into iPadOS is ongoing.

In the same press release, the European Commission also decided against designating Microsoft’s Edge browser, Bing search engine, and advertising business as core platforms subject to the DMA.

As you may recall from our prior coverage, Apple’s Safari browser, App Store, and iOS are all subject to the DMA, but the EC deferred making a decision on iMessage. In the interim, Apple announced it would support the RCS messaging standard that will exist alongside iMessage in Apple’s Messages app and will include several features that previously were unavailable to non-iPhone users who messaged iPhone users. It’s likely that Apple’s decision to incorporate RCS, which the company says is coming later this year, and iMessage’s relatively small European market share played a role in the EC’s decision, although the reasoning behind the decision was not shared by EU regulators.

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AppStories, Episode 369 – Digging into the DMA

This week on AppStories, we consider how Apple’s response to the Digital Markets Act will change the world of apps for developers and users in the EU.

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Understanding Apple’s Response to the DMA

Source: Apple.

Source: Apple.

What a week. When it began to look like Apple would announce how it planned to comply with the EU’s Digital Markets Act (DMA), I expected small changes at the margins that wouldn’t significantly move the needle in the EU or anywhere else. Boy, I was wrong.

Instead, we got a far-reaching, complex response that touches aspects of iOS, system apps, the App Store. There’s a lot of ground to cover, but Federico and I have talked to Apple a couple of times each about what was announced and ask questions, so it’s time to dive and try to make sense of everything.

Before getting too deep into the weeds, it’s important to understand why Apple made its announcement last week and, whether you share it or not, the company’s perspective. That makes understanding the details of what was announced easier and will hopefully help you parse legitimate criticisms of Apple’s plans from hollow hot-takes.

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Apple Shares List of Alternate Browsers That Will Be Available to EU Users in iOS 17.4

One element of the changes coming to iOS in the European Union is that beginning with iOS 17.4, EU users will see a choice of browsers when they first launch Safari that can be set as the systemwide default browser. For each country, that list will contain the 12 most popular browsers from its App Store storefront displayed to the user in a random order.

As you can imagine, there is overlap among EU member countries, but there are plenty of differences, too. If you’re curious which browsers will be listed in your country, check out the lists for each of the 27 EU member countries after the break that Apple has told us will appear the first time Safari is launched in iOS 17.4.

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