2024-03-06
Apple's new EU measures draw complaint from 34 digital organizations
Apple is drawing criticism from digital advocacy groups and app developers that its moves to adhere with Europe's new Digital Markets Act (DMA) antitrust rules amount to an underwhelming facade of compliance.
A coalition of 34 organizations including Epic Games and Spotify wrote to the European Commission lambasting Apple's proposed changes to App Store, iOS and Safari operations for EU users. The DMA coming into force on March 7th requires designated "gatekeeper" tech giants like Apple to open up ecosystems facilitating greater competition.
While Apple publicized allowing third-party apps, payments beyond Apple Pay and reduced commissions in Europe - critics argue the concessions barely scratch the surface. Instead they enable Apple to still weaponize significant fees like the newly introduced 50-cent "Core Technology Fee" per million downloads on competing iPhone app stores.
This ostensible compliance while skirting the spirit of promoting contestable digital markets makes "a mockery" of regulatory efforts as per the letter. It requests the Commission scrutinize the superficial tweaks versus the DMA’s true objective of dismantling enduring gatekeeper power.
The episodes highlight two key issues. Firstly, the scope for creative corporate maneuvering to retain market dominance despite antitrust legislation. Secondly, the long-term challenge for policymakers being compelled into a game of constant legislative catch-up with tech industry ingenuity as innovations emerge.
While Apple contends its changes uphold EU consumer interests, authorities face an urgent need to closely evaluate whether the action meaningfully shifts the competitive landscape for developers. If found lacking, the company could face penalties up to 10% of global turnover for non-compliance. The next few months will test both the DMA’s impact, as well as regulators’ proactiveness to make it work.
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