EU Opens Non-Compliance Investigations into Apple, Meta, and Google

[MacRumors]

Apple's compliance with new EU laws designed to rein in the market power of big tech companies is set to be investigated by regulators, the European Commission has announced.

The Commission said on Monday that non-compliance investigations have been opened against Apple, Google, and Meta, under the new Digital Markets Act (DMA).

The probe into Apple will look at whether the company allows developers to "steer" users away from its App Store, as well as its default web browser choice screen. Google's rules on steering in Google Play and self-preferencing in Google searches are also being looked at, as is Meta's "pay or consent model."

The Commission has opened proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations pertaining to app stores are in breach of the DMA. Article 5(4) of the DMA requires gatekeepers to allow app developers to "steer" consumers to offers outside the gatekeepers' app stores, free of charge.

The Commission is concerned that Alphabet's and Apple's measures may not be fully compliant as they impose various restrictions and limitations. These constrain, among other things, developers' ability to freely communicate and promote offers and directly conclude contracts, including by imposing various charges.

[...]

The Commission has opened proceedings against Apple regarding their measures to comply with obligations to (i) enable end users to easily uninstall any software applications on iOS, (ii) easily change default settings on iOS and (iii) prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones.

The Commission is concerned that Apple's measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.

The Commission said it is also taking other investigatory steps to gather facts and information to clarify whether Apple's new fee structure and other terms and conditions for alternative app stores and distribution of apps from the web (sideloading) may be defeating the purpose of its obligations under the DMA.

The Commission has also adopted five retention orders addressed to Alphabet, Amazon, Apple, Meta, and Microsoft, asking them to retain documents which might be used to assess their compliance with the DMA obligations. The Commission intends to conclude the proceedings opened today within 12 months.

In cases of infringement, the Commission can impose fines up to 10% of the company's total worldwide turnover. Such fines can go up to 20% in case of repeated infringement under the DMA. The Commission also has the power to adopt "additional remedies" such as "obliging a gatekeeper to sell a business or parts of it," or banning the company from acquisitions of additional services related to the non-compliance.

Apple earlier this month implemented several major changes to the way the App Store and apps operate in the EU in order to comply with the DMA. These changes are included in iOS 17.4, but are generally limited to countries that are in the European Union.

Article Link: EU Opens Non-Compliance Investigations into Apple, Meta, and Google

 

[ItsASpider]

I'm shocked. Shocked, I say.

Not really, tho. That these companies weren't actually following the rules properly was kinda clear (and yes people, the rules are perfectly clear). It's telling that Microsoft of all companies is not being investigated.

 

[truthsteve]

Ugh, here we go again. Precious engineering resources being wasted on this

 

[d686546s]

The drama continues, but it seemed likely that parts of Apple's proposed solution would be problematic or at least come under increased scrutiny. The fee structures are quite clearly set up to dissuade alternative app stores, as are the procedures around it.

In any case, anyone who thought that it was all done and dusted, signed off by the Commission and Apple in the clear was obviously wrong.

 

[mvwoensel]

The Commission is also looking at compliance with the obligation to enable users to change default apps and uninstall system apps. Apple has already said that users can change the default maps app by March 2025, but Apple has said nothing about changing and uninstalling apps like Phone, Messages, Camera, Photos.

I didn't think the Commission would focus on that in the first round of investigations, but apparently they are!

 

[contacos]

Considering they are already investigating something as little as the Browser Choice Screen, a lot of luck to Apple

 

[sw1tcher]

2024 hasn't been good for Tim Cook and Apple.

 

[mvwoensel]

Precious engineering resources being wasted on this

Then maybe Apple should've complied in good faith.

 

[kiranmk2]

Then maybe Apple should've complied in good faith.

Maybe the EU should employ better lawyers to stop companies easily circumventing the new rules

I'm surprised that there isn't a fine structure set up so that malicious compliance isn't a trigger for a % of revenues-level fine.

 

[nortonandreev]

Ugh, here we go again. Precious engineering resources being wasted on this

Well, yes and not. Engineers should work to meet the business' needs and the business needs to be compliant to operate properly.

 

[dbrose]

I have finally found a good reason for Brexit! It will end up these big companies pulling out of Europe!

 

[DelayedGratificationGene]

Ya well whatever. The real news is the overwhelming majority growing consensus that the DoJ case against Apple is a joke.

 

[contacos]

Maybe the EU should employ better lawyers to stop companies easily circumventing the new rules

I'm surprised that there isn't a fine structure set up so that malicious compliance isn't a trigger for a % of revenues-level fine.

Isn’t this the point of this investigation? Seems like those companies may simply not follow those established new rules. No need for the EU to get „better lawyers“

 

[wilhoitm]

I told you guys this would get out of control! All of us are being told what we can and cannot do like characters in the movie "The Matrix". All of you guys who thought this was great are going to ultimately hate it! Governments should not be picking winners and losers and telling companies, like Apple, what they can and cannot do! Absolute power! Corrupts absolutely!

 

[contacos]

I have finally found a good reason for Brexit! It will end up these big companies pulling out of Europe!

The board and obligations to the shareholders would never allow this

 

[Zest28]

20% of worldwide turnover as a penalty? I would say that is a good enough reason to exit that region.

Why didn't Tim Cook just start selling Android phones instead in the EU? The solution is so simple. Then it is Google their problem.

 

[kiranmk2]

Isn’t this the point of this investigation? Seems like those companies may simply not follow those established new rules. No need for the EU to get „better lawyers“

If a company can get around the laws on day 1, then the new laws were not written well. Better lawyers are needed to write tighter wording on the laws.

 

[neuropsychguy]

I'm shocked. Shocked, I say.

Not really, tho. That these companies weren't actually following the rules properly was kinda clear (and yes people, the rules are perfectly clear). It's telling that Microsoft of all companies is not being investigated.

Are the rules perfectly clear? If they were perfectly clear, the EU wouldn't need to investigate whether Apple is following the rules -- it would be perfectly clear and the EU could say right now: "You are not following the rules" or "You are following the rules". The fact that the EU is investigating shows that it's not clear. That's generally how regulations go -- are they ever written perfectly with no ambiguity at all? Do regulatory lawyers exist? If so, regulations are never perfectly clear.

It's far too soon to say "these companies weren't actually following the rules properly". It's possible they are not. It is also possible they are. It's also possible that they are following the rules but the EU doesn't like how they are following the rules and will change or clarify the regulations, instigating further changes.

 

[wbeasley]

Perhaps Apple should just sell iPhones with nothing installed.
Let the EU users work out what to load and how?

Or a button... load standard iOS/standard Android.

Consumers given the ultimate choice then.
EU cant complain about any preinstalled apps or defaults.

 

[wilhoitm]

I'm shocked. Shocked, I say.

Not really, tho. That these companies weren't actually following the rules properly was kinda clear (and yes people, the rules are perfectly clear). It's telling that Microsoft of all companies is not being investigated.

Microsoft is a loser when it comes to smart phones and social media due to its bad decisions in those areas. The Government is picking who should be a winners and losers here! But they will come after Microsoft for AI. This is ultimately insanity! The free market system does what is needed all by itself!

 

[pacificblue]

Some seething burgers ITT. You love to see it.

 

[Doodah7]

Are the rules perfectly clear? If they were perfectly clear, the EU wouldn't need to investigate whether or not Apple is following the rules -- it would be perfectly clear and the EU would say, "You are not following the rules" or "You are following the rules". The fact that they have to investigate shows that it's not clear. This means the new rules are not clear and likely will need to be changed. That's generally how regulations go -- are they ever written perfectly with no ambiguity at all?

It's far too soon to say "these companies weren't actually following the rules properly".

What? You suggest that they should skip the investigation and move straight to summary judgement? Get real.

 

[wbeasley]

The board and obligations to the shareholders would never allow this

why? if it costs too much to do business and affects profits, then retreat could be a best case scenario. Until EU buyers revolt against the EU lawmakers. Politicians still need votes to maintain their power base...

 

[Smartass]

20% of worldwide turnover as a penalty? I would say that is a good enough reason to exit that region.

Why didn't Tim Cook just start selling Android phones instead in the EU? The solution is so simple. Then it is Google their problem.

And when they're hit in China for similar reasons, they should exit that market as well? And what would happen when DOJ starts anti-trust case against Apple? Quit US market as well, and sell only to penguins in Antarctica?

 

[Zest28]

And when they're hit in China for similar reasons, they should exit that market as well? And what would happen when DOJ starts anti-trust case against Apple? Quit US market as well, and sell only to penguins in Antarctica?

Europe is in the end, the smallest market who is in decline as their countries are in recession. Europe is simply not as important as the USA and Asia.

To do it for Asia, it makes sense as it is literally the biggest market in the world.