Margrethe Vestager, the European Union’s antitrust chief, has issued stern warnings to tech giants Apple and Meta Platforms concerning their recent fee structures and practices that could potentially stifle competition and consumer choice.
Vestager’s cautionary remarks come amidst mounting scrutiny over the compliance of both companies with the Digital Markets Act (DMA), a legislative initiative designed to foster fair competition within the digital landscape.
Apple’s unveiling of a new fee structure, which includes a core technology fee of 50 euro cents per user account annually, has captured Vestager’s attention. While Apple has made strides to adhere to EU tech regulations by opening up its once-closed ecosystem to competitors, concerns linger, notably from major app developers such as Epic Games, regarding the potential anti-competitive ramifications of these fees.
Read more: Apple Denies EU Competition Law Violation Ahead of Fine Decision
Vestager stressed the necessity of probing whether Apple’s fee arrangement runs counter to the objectives outlined in the DMA, potentially curtailing users’ ability to enjoy expanded options in the digital marketplace.
In an interview with Reuters, Vestager voiced reservations regarding Meta’s recent introduction of subscription fees for its Facebook and Instagram platforms. Despite Meta’s proposal to reduce the monthly subscription fee, apprehensions persist regarding the impact on competition and consumer welfare.
Vestager underscored the significance of engaging in constructive dialogue with Meta to ensure adherence to the DMA and to explore alternative methods of monetization that do not encumber competition.
Source: Wion News
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