The EU executive is using new powers intended to stop online gatekeepers dominating digital markets, given fears it might block out rivals to its own Apple Watch or AirPods.
The European Commission is starting two proceedings to help Apple comply with the Digital Markets Act (DMA), the EU executive said today (19 September).
The move follows conversations between regulators and the US big tech company on its compliance with new competition rules which aim to ensure fair markets in the digital sector.
As of May 2023, the DMA regulates online gatekeeper — any large digital platform deemed to have enough power to create a digital bottleneck.
Under the DMA, Apple will have to provide free and effective interoperability to third party developers, and to businesses with hardware and software features controlled by Apple’s operating systems iOS and iPadOS.
The Commission wants Apple to specify how it will ensure its devices work with other smartwatches, headphones and virtual reality headsets, looking at functionalities such as notifications, device pairing and connectivity — given fears it might restrict competition to favour its own products, such as AirPods or Apple Watch.
The second proceeding examines how Apple addresses requests for interoperability submitted by developers to ensure third-party devices work with Apple’s system.
“Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue. This process will provide clarity for developers, third parties and Apple. We will continue our dialogue with Apple and consult third parties to ensure that the proposed measures work in practice and meet the needs of businesses,” Margrethe Vestager, the EU’s competition commissioner, said in a statement.
To date, seven gatekeepers have been designated under the DMA, including Amazon, Apple, Microsoft and Booking.com, and the companies which run Google, TikTok and Facebook.
The proceedings will be closed within 6 months, during which the Commission will send Apple its preliminary findings.
DMA breach
In June, the Commission said Apple was breaching the DMA with its App Store rules.
According to the EU executive’s preliminary filings, the tech giant prevents app developers from freely steering consumers to alternative channels for content. Though Apple still has the right to respond, the Commission could open a non-compliance decision any time before next March.
Yesterday (18 September), pan-European consumer group Euroconsumers launched a coordinated class action in Belgium, Italy, Spain, and Portugal against Apple for imposing unfair charges on non-Apple music streaming services though its app store.
The company applied restrictions on app developers preventing them from using cheaper music subscription services outside of the app, a European Commission investigation found earlier this year. Apple was hit with a €1.8 billion fine as a result.
Euroconsumers aims to recover some €62 million for over 500,000 victims in the four countries alone.