EU Fines Apple and Meta Over DMA Violations
Foo Yun Chee and Jan Strupczewski (European Commission, MacRumors, Hacker News):
Apple was fined 500 million euros ($570 million) on Wednesday and Meta 200 million euros, as European Union antitrust regulators handed out the first sanctions under landmark legislation aimed at curbing the power of Big Tech.
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The EU competition watchdog said Apple must remove technical and commercial restrictions that prevent app developers from steering users to cheaper deals outside the App Store.
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Apple avoided a fine in a separate investigation into its browser options on iPhones after making changes that allow users to switch to a rival browser or search engine more easily. Regulators said these comply with the DMA and closed the investigation on Wednesday.
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The iPhone maker was still charged with breaching DMA rules on the grounds it hindered users from sideloading, a practice that involves downloading alternative app stores and apps from the web.
In addition to the fine, Apple has been issued with a cease-and-desist order requiring it to make further product changes by late June. If the firm fails to comply, the Commission can fine it for every additional day it is in breach of the law.
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Finally, the Commission opted to escalate its enforcement effort against Apple’s app store, issuing the iPhone-maker with a charge sheet concerning its dealings with alternative app marketplaces. These preliminary findings still need to be investigated further but could mean more DMA fines for Apple down the line.
Apple booked about $184B in profit last year, so this fine is about 0.3% of that. Maybe Apple just considers this the new cost of doing business in the EU? […] Something, not nothing, but definitely not a big deal. Teresa Ribera, the EC competition chief, is clearly trying to thread a political needle here.
Previously:
- Apple’s DMA Compliance Criticized
- European Commission Specification Proceedings
- EU Fines Apple $2 Billion Over Anti-Steering Rules
Update (2025-04-24): European Commission:
The Commission takes the preliminary view that Apple failed to comply with this obligation in view of the conditions it imposes on app (and app store) developers. Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee). Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. Finally, Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels.
So is the entire idea of the Core Technology Fee disallowed? Or is the fee too high? Does Apple need to just make app distribution free and unfettered, no fees, no restrictions?
Who knows?
I would love to know what the dialog has been like between Apple and the EC. It seems obvious that their attempts at compliance were trying to subvert the intent of the regulations. But how did we arrive at this situation where Apple built and shipped something and a year later the preliminary view is that it’s not compliant? Is it just like App Review, where you can get pulled for violating the rules after already being approved? Did Apple choose not to apprise the EC of its plans in advance, to better delay meaningful change? Did the EC change its mind or give unclear guidance or not want to listen in the first place?
Speaking to Reuters, a spokesperson for the White House condemned the EU’s actions, signaling growing transatlantic tensions over regulation of U.S. technology firms:
This novel form of economic extortion will not be tolerated by the United States. Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society.
I think Tim Cook not being a product guy has really hurt in terms of what Apple delivers to its customers. But he seems to be good at the business thing.
Update (2025-04-25): Peter Steinberger:
Break up their walled garden. That might motivate me to build a native client for my next thing. Not gonna risk this under the current rules. (also already so bought into the web world that they likely lost me for good anyhow)
Apple’s anti-steering is rightfully punished. Feels like a thing Apple should’ve just ditched for goodwill rather than maintain for what little it’s bringing in.
Ruling the Core Technology Fee illegal with no remedy is hilariously EU-brained though.
