It’s fair to say that Apple and the European Commission are not exactly friends, as the two sides are at odds over Apple’s compliance, or alleged lack of compliance, with the European Union’s Digital Markets Act (DMA), designed to curb the power of big tech companies.
Last week, Apple announced that it was delaying the rollout of certain features, including its Apple Intelligence AI tools, in the European Union due to concerns that “DMA interoperability requirements may force us to compromise the integrity of our products in ways that put users’ privacy and data security at risk.” As it turns out, the EU isn’t too happy about the decision.
According to Euraactive, the request to delay the introduction of Apple Intelligence in the EU is “a stunning and open declaration that they are 100% aware that this is another way to cripple competition where they are already present,” EU Competition Commissioner Margrethe Vestager said at a Forum Europe event. Vestager added that the “shortened version of the DMA” means that companies must be open to competition in order to continue operating in the region.
Not to defend Apple here, but these comments will definitely raise eyebrows, especially since Vestager also said, “Personally, I’m relieved that I don’t get the AI update service on my iPhone.” While Apple intends to roll out Apple Intelligence more broadly in Europe, it is taking a cautious approach to the technology in the region due to “regulatory uncertainty,” so as not to compromise user safety.
At the moment, the European Commission is conducting multiple investigations into the company for possible violations of the DMA. This week, the Commission accused Apple of violating the Act’s anti-inducing provisions by prohibiting app developers from freely informing users of alternative payment options outside of the company’s ecosystem. If convicted, Apple could be fined up to 10% of its annual global revenue. Based on 2023 revenue, the fine could be up to $38 billion. The percentage of the fine could be doubled for repeat violations.
Earlier this year, before the DMA came into effect, the European Commission fined Apple 1.8 billion euros ($1.95 billion) for violating previous anti-steering rules. The Commission said Apple blocked rival music-streaming apps from telling users they could get a lower subscription price if they signed up outside the iOS app. Apple is challenging the fine.
