William Gallagher
Antitrust executive Margrethe Vestager says the EU has multiple issues over Apple's App Store and its alleged non-compliance with the region's new laws, and vows to enforce fines where necessary.
It has previously been rumored that the European Union is about to issue a fine against Apple over its alleged continuing to block rivals from promoting alternative services. Now European Commissioner for Competition, Margrethe Vestager, has confirmed that the EU is investigating Apple.
"Well, we have a number of Apple issues [and] I find them very serious," she said on CNBC. I was very surprised that we would have such suspicions of Apple being non-compliant."
"I can say this is not what was expected of such a company," she continued. "Of course, we will enforce exactly with the same dedication and with the same top priority as with any other business."
While refusing to detail the issues, she said that an announcement would be made "hopefully soon." Vestager also said that the EU has five current cases against Big Tech firms, including Apple, with more in progress.
"I expected cases, I was a bit surprised that we would have so many cases so soon and more in the pipeline," she said. Vestager says she believes the Digital Markets Act (DMA) is directly affecting firms and their financial bottom line, and consequently she sees companies trying to evade the law.
Under the DMA, the EU has the power to levy a daily penalty of up to 5% of its average daily worldwide turnover. In Apple's case, that potentially means up to $1 billion every day.
The DMA also gives the EU the authority to force the breakup of companies. Vestager described this as meaning the EU has "a strong toolbox" of options with which to punish non-compliance, and says that the DMA will be enforced.
"It's only when you enforce that you change the law, the world," she said, "because only then do you change behavior."
The potential further fines against Apple follow the EU's fining it $2 billion over Apple allegedly favoring its own Apple Music over the vastly more popular Spotify. The EU has subsequently been reported to be investigating whether that fine made Apple change any of its practices.
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96 Comments
Whenever the EU needs money for budget overruns they fine Apple or Google or some other large American company to cover it. I hope Apple raises their prices in the EU to cover the fake fines.
I have very serious issues with the dictatorship called the EU. It would be nice if the EU actually provided a product that competed with Apple but, alas, they don't have the ability to do so. Citizens of the EU have spoken, they like Apple products, they buy Apple products and want to continue to use Apple products the way Apple sells them. The only people who are actually complaining about Apple are developers who want to leech on Apple products getting everything for free. If the EU can't come up with products its own citizens want to buy then there's an issue with the EU, not with Apple.
The first salvo should be giving away Apple Music for free or for a trivial amount to crush Spotify. The EU's problems is it cannot create any of its own products that people want and they are probably still holding a grudge against Apple for the implosion of Nokia.