Targeting Apple, the EU's "Digital Markets Act" fires the first shot!

The anti-monopoly storm is brewing again, with the EU's "Digital Markets Act" targeting Apple as its first target.

The European Commission announced on Monday that based on preliminary investigation results, Apple is accused of violating the "Digital Markets Act" with its App Store rules.

EU Commissioner Thierry Breton posted on X platform:

Apple has long been squeezing out innovative companies, depriving consumers of new opportunities and choices. Today we will take further measures to ensure that the App Store and iOS comply with the "Digital Markets Act".

This is also the first batch of charges brought under the EU's "Digital Markets Act" since it came into effect in March, aimed at promoting competition in the digital advertising, online search, and app ecosystems.

If the EU ultimately finds Apple in violation of the regulations, it could face a fine of 10% of its global revenue, with Apple's revenue last year amounting to $383 billion.

Apple also stated last week that EU regulations could prevent it from launching AI features in the European market.

It is worth mentioning that the EU's antitrust watchdog has been relentlessly targeting Apple. In March, Apple was fined 1.8 billion euros for abusing its dominant position in the music streaming market, and now the new regulations are targeting Apple again, intensifying the regulatory challenges Apple faces globally.

EU Antitrust Watchdog Targeting Apple

The focus of the EU this time is on Apple's alleged abuse of its dominant position in the App Store, initially sparked by a complaint from Spotify Technology SA in 2019. The Swedish service company claimed that it was forced to raise monthly subscription prices to cover costs related to the operation of the Apple App Store.

The EU stated in its declaration that Apple's multiple App Store rules do not allow developers to freely guide their customers.

For example, Apple's App Store rules do not allow developers to provide pricing information within the app, or allow them to freely communicate discounts offered outside the App Store to customers, with restrictions on developers providing links redirecting customers to external web pages.

Apple stated that in recent months, it has made modifications based on feedback from app developers and EU regulatory agencies to comply with the requirements of the "Digital Markets Act," and added, "We are confident that our plans comply with legal requirements."

Just a few months ago, the EU also fined Apple over 1.8 billion euros for allegedly abusing its dominant position in the music streaming market, constituting unfair trade practices.

In addition, the EU also announced an investigation into the introduction of so-called "core technical fees" in the Apple App Store.

Massive fines on the way, AI also facing obstacles?

It is important to note that Monday's charges only preliminarily establish that Apple has violated the regulations, which does not necessarily mean that the company will ultimately be found guilty. The EU regulatory agency will make a final ruling by the end of March 2025 If ultimately found to violate regulations, Apple could face hefty fines, up to 10% of its global annual revenue.

In addition to questioning the legality of several of its services, Apple also stated that due to regulations, it will not be able to launch AI features in the EU market this year.

Apple stated that due to the Digital Markets Act forcing a reduction in the security of products and services, the company is unable to release the "Apple Intelligence" personal intelligence system for EU users this year, the "iPhone Mirror" on Mac, and the "SharePlay Screen Sharing" feature in FaceTime calls