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EU Cracks Down on Apple for Anti-Competitive Behavior – Here’s What Apple Told Us in Response

EU Cracks Down on Apple for Anti-Competitive Behavior – Here’s What Apple Told Us in Response

  • 20.03.2025 17:09
  • techrepublic.com
  • Keywords: Apple, EU

The EU is investigating Apple for violating the Digital Markets Act by restricting third-party hardware access to its platforms. Fines could reach up to 10% of Apple's global turnover. Apple claims compliance would slow innovation and expose user data to companies like Meta, which has been fined for privacy violations.

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Estimated market influence

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

The EU suspects Apple of breaching the Digital Markets Act by not allowing third-party hardware to connect with its platforms. Apple is facing potential fines up to 10% of its total worldwide turnover and has been given guidance on improving interoperability.

Meta

Meta

Negativesentiment_dissatisfied
Analyst rating: Strong buy

Apple argued that granting third parties access to its technology stack could allow companies like Meta, which has been fined by regulators for privacy violations, to gain swathes of sensitive user data.

Context

Analysis of EU’s Action Against Apple for Anti-Competitive Behavior

DMA Violation and Potential Fines

  • DMA Breach: The EU suspects Apple has violated the Digital Markets Act (DMA) by restricting third-party hardware from connecting with its platforms.
  • Fines: Noncompliance can result in fines up to 10% of global turnover, increasing to 20% for repeated offenses.

Interoperability Requirements

  • iOS Connectivity Features: Apple must improve compatibility with third-party devices (e.g., smartwatches, earbuds) for features like notifications, AirPlay, and Bluetooth.
  • Transparency in App Review Process: Apple must make its process for handling interoperability requests more transparent and predictable.

Competitive Dynamics

  • Market Impact: The EU aims to foster competition by allowing third-party devices to connect with Apple’s platforms, potentially reducing Apple’s dominance in the IoT ecosystem.
  • Developer Concerns: Apple argued that granting access to its technology stack could expose user data to companies like Meta, which has faced privacy violations.

Strategic Considerations

  • Innovation vs. Regulation: Apple claims compliance will slow innovation, while the EU argues it will drive competition and consumer choice.
  • Long-Term Effects: This ruling may set a precedent for regulating tech giants, influencing future market dynamics and regulatory actions globally.

Industry Implications

  • Impact on Competitors: The decision could encourage competitors like Google to innovate without similar restrictions.
  • Regulatory Landscape: This marks a significant step in enforcing the DMA, potentially leading to broader changes in how tech companies operate in Europe.