Wesley Hilliard
The chief of the European anti-trust commission, Margrethe Vestager, wants Apple to allow alternate app stores to enable proper competition on its platforms.
The Epic versus Apple trial was not the end of scrutiny against Apple's business practices on the iPhone. Margrethe Vestager, an EU antitrust regulator, hopes to push Apple and other tech companies to open up with new regulations.
In an interview with Kara Swisher on the "Sway" podcast, Vestager spoke about her battles against big tech and what is coming next. Most prominently, she wants legislation that will force "gatekeepers" to allow more competition on the platforms they have created, one being Apple.
"What we have tabled now as proposed legislation is to say, well, if you buy these objective criteria, qualitative and quantitative, will be designated as a gatekeeper, then from the very first day these are the things that you cannot do," Vestager said while describing the Digital Markets Act. "These are the things that you have to do. Have to do could be make room for a second app store. Have to do could be share data."
Vestager believes a lot of Epic's complaints could be solved by allowing a second App Store. Apps on Apple's platform have to be in the Apple-controlled store, use Apple-controlled payments, and engage with customers following Apple-controlled rules.
Swisher noted that Apple's arguments for the single App Store and maintaining control of it, are to maintain privacy and security. Specifically, Swisher proposed that since Apple created the market, it should be able to control it.
It is these restrictions, and a single-party both creating and controlling the market that led to unfair competitive practices, according to Vestager. Apple doesn't have to pay a fee for its digital sales to itself, she believes, therefore the company is competing with an advantage right out of the gate.
"Now, I think a second app store, that is in the future," said Vestager. "That will take time, because it's in a legislative proposal that we have tabled in front of the European Parliament. But I would hope that we could conclude this case in good time. And then we'd see how to remedy this. Depends, of course, very much on the Apple answer to our concerns."
Vestager also discussed her involvement with the $15 billion Irish tax bill that the EU sided with Apple on. She believes her approach may have been too aggressive and could have damaged the authority of the European Commission.
Ultimately, Vestager believes that the short-term solution for companies like Apple is to pass regulations now and begin building for a bigger goal later. Get Apple to allow alternate app stores and pay fair taxes in the short term, and perhaps in the next 100 years, get some kind of global tax authority in place.
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83 Comments
Wants are nice. I want Apple to acquire Yelp. But this woman can F off and let Apple run Apple like Apple wants.
Apple should tell them to go screw, preemptively. These bureaucrats are unreal. “We think this should be the way Apple runs things. Make it so!” I’d love to see Apple *really* use it’s dominant position. Issue a statement in response saying “If such requirements are implemented, Apple will strongly consider ending all business in the European Union.”
It's ironic that part of Epic's complaints against Apple are that they supposedly don't do enough to warrant a 30% cut, but the EU's solution would be to introduce stores run by middle-men who would still charge a commission while also having absolutely no role (and no risk) in developing the hardware or the OS or the developers tools.
That's the right thing, users should be able to choose.
I don't think it would harm Apple really hard, but it would bring freedom to the platform.
When Apple allows third party app stores, it could be done with maintaining the iOS security model (only app review is done by another company).
If Apple products become like Android, I will be among the first to migrate away to first viable alternative. Just as much as being among the first to rid all Facebook-related apps off every single device I own and/or use, and going back to the web-based since there’s less data for them to track with (for now).
Regulators are nothing but trying ways to milk cows for their own fundings. Are they really standing on the side of the massive consumers’ side who voted with their wallets on Apple products?
is she just trying to reduce Apple into the yesterdecade’s Nokia?