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Apple Faces ‘Very Serious’ Issues Under EU Digital Regulations, Says Vestager

 |  June 19, 2024

Apple is facing multiple “very serious” issues under the European Union’s expansive Digital Markets Act (DMA), according to Margrethe Vestager, the bloc’s competition chief. This revelation follows reports that EU regulators are preparing charges against the iPhone maker.

In March, the European Commission, the EU’s executive arm, initiated an investigation into major tech companies, including Apple, Alphabet and Meta, under the newly applicable DMA. The legislation aims to curb the dominance of Big Tech and ensure fair competition.

The probe into Apple focuses on several concerns, particularly whether the tech giant is obstructing businesses from informing users about cheaper alternatives for products or subscriptions outside of its App Store. Vestager highlighted these concerns in an interview with CNBC’s Silvia Amaro, expressing her surprise at the suspicions of non-compliance by Apple.

Read more: Apple Denies EU Competition Law Violation Ahead of Fine Decision

“We have a number of Apple issues; I find them very serious. I was very surprised that we would have such suspicions of Apple being non-compliant,” Vestager stated. She emphasized the importance of the App Store and Apple’s payment mechanisms for business, underscoring the EU’s commitment to enforce regulations rigorously.

Vestager assured that the conclusions of the probe will be disclosed “hopefully soon.” Her comments follow a report by the Financial Times, which indicated that Brussels is preparing to charge Apple under the DMA. The charges, which would be preliminary, suggest that Apple could take measures to address the regulators’ concerns.

The DMA, which came into force this year, represents one of the most significant efforts by the EU to regulate major tech firms, aiming to create a more competitive and fair digital market. As the investigation progresses, all eyes are on how Apple will respond to the looming charges and whether it will make changes to comply with EU regulations.

Source: CNBC