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EU Antitrust Chief Warns Apple and Meta Platforms

EU antitrust chief Margrethe Vestager on Tuesday warned Apple and Meta Platforms on their new fees for their services, saying that this may hinder users from enjoying the benefits of the Digital Markets Act which aims to give them more choices.

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Apple’s Compliance Efforts under EU Tech Legislation

Apple announced a slew of changes in January in a bid to comply with the landmark EU tech legislation which requires it to open up its closed eco-system to rivals. These changes are aimed at promoting fair competition within the digital market.

A new fee structure includes a core technology fee of 50 euro cents per user account per year that major app developers will have to pay even if they do not use any of AppleÔÇÖs payment services, which has triggered criticism from rivals such as Fortnite creator Epic Games.

Vestager said the new fees have attracted her attention. She expressed interest in investigating whether these fees would impede the benefits outlined in the Digital Markets Act.

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Festive offer

ÔÇ£I think there are many different ways to monetize the services that you provide. Because one thing are the very targeted advertising that builds on data being consumed. Another way of showing your advertising is to make that contextual,ÔÇØ she said.

ÔÇ£So I think itÔÇÖs important to continue the conversation with Meta and we will assess also finally, what is the next push in order for them to be compliant with the DMA.ÔÇØ

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Ensuring Fair Competition and User Rights

Vestager also warned companies against discouraging users from switching to rivals by disparaging them, saying this kind of behaviour could trigger an investigation. Apple has said some of its changes could expose users to security risks. Maintaining a balance between competition and user protection is essential in this digital landscape.

ÔÇ£I would think of it as unwise to say that the services are not safe to use, because that has nothing to do with the DMA. The DMA is there to open the market for other service providers to get to you and how your service provider of your operating system, how they will make sure that it is safe is for them to decide,ÔÇØ she said.

ÔÇ£And of course, if we see or get the suspicion that this is in order to say that someone else is not doing their job of course, we might take initiatives to look into that.ÔÇØ

The AI legalese decoder can aid in interpreting the regulatory framework of the DMA, ensuring that user rights and safety are prioritized in the midst of industry changes and competition.

Feedback and Investigations

Vestager said feedback from developers was key to whether she would launch investigations into any of the six companies subjected to the DMA. This open dialogue is crucial for maintaining transparency and accountability within the digital market ecosystem.

Asked whether she had received any comments from third parties, she said: ÔÇ£Quite a lot, I would say.ÔÇØ Gathering diverse perspectives and inputs is vital in shaping effective regulatory strategies.

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First uploaded on: 20-03-2024 at 08:57 IST


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