Apple Demands that EU Abandons DMA

Apple Demands that EU Abandons DMA
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Apple demanded the European Union abandon its Digital Markets Act (DMA). The company argued that the legislation is making it harder for tech companies to do business, giving consumers less choice and creating an unfair competitive landscape.

In a move that steps up an escalating row between the US technology giant and the bloc’s regulators, Apple issued a fiery response to the European Commission, which asked for routine feedback from companies and EU citizens about the law’s effects. “The DMA should be repealed while a more appropriate fit for purpose legislative instrument is put in place,” Apple stated in response to the EC. The DMA entered into force in 2022 to curb big tech dominance and promote smaller players, with the EC threatening fines of up to 10% of global revenue from companies that do not comply.

Apple was fined €570 million in April following an investigation into app store practices, and in June, the company announced sweeping changes to its policies. In a related statement on the DMA’s impact, Apple opened up further: “Regulators claimed the DMA would promote competition and give European consumers more choices. But the law is not living up to these promises. In fact, it’s having some of the opposite effects.”

The US company argued that when features are delayed or unavailable, EU users don’t get the same options as users in the rest of the world. Secondly, it pointed out that there was less differentiation because Apple was being forced to build features and technologies for non-Apple products, making options available to European consumers more similar.

“For instance, the changes to app marketplaces are making iOS look more like Android – and that reduces choice,” Apple stated. Thirdly, it stated the DMAs’ rules only apply to Apple, even though Samsung is the smartphone leader in Europe and Chinese companies are growing fast. Instead of rewarding Apple for leading the way in building a unique, innovative ecosystem “that others have copied”, the DMA singles Apple out while leaving our competitors free to continue as they always have.

Apple also pointed to delays in introducing new features to the EU, such as live translation on AirPods and iPhone mirroring, because of EU rules around interoperability. “The DMA means the list of delayed features in the EU will probably get longer. And our EU users’ experience on Apple products will fall further behind,” added Apple.