Apple’s battle with the EU’s competition regulators is set to continue for many more years. The EU’s Digital Markets Act (DMA) compels tech companies to make their platforms open so users have greater freedom. But Apple argues that the orders it’s been given will result in its competition getting access to user data and the software it uses to power many of its devices.
Apple’s problem here is simple. The EU has written laws that it says Apple is now breaching. These laws were written many years after Apple started pursuing its strategy of creating an entire tech ecosystem where the hardware, software and services are tightly integrated. It enabled third-party participation through its App Store.
In a sense, Apple is now being penalised for legally pursuing a strategy that has worked extraordinarily well. But it’s also reasonable to argue that Apple has created an ecosystem that either limits third-party participation or profits unfairly, allegedly in the eyes of the EU, from parties that want to access that ecosystem.
It was only a few weeks ago that the EU fined Apple €500M over competition law breaches. And, now, Apple has launched an appeal saying:
These deeply flawed rules that only target Apple – and no other company – will severely limit our ability to deliver innovative products and features to Europe, leading to an inferior user experience for our European customers.
The kicker is that while Apple’s appeal progresses they must comply with the orders given by the EU’s regulators. Assuming they do that, Apple loses whether or not it wins the appeal. Meta, Google, Spotify and Garmin have requested access to Apple users’ data. The EU’s competition commission has ordered Apple to provide its technology and mobile operating system to its competition to enable them to build apps, devices and services that can connect with iPhones and iPads.
There is a lot at stake here for Apple. Other jurisdictions, emboldened by the EU, may seek to invoke their own, similar laws. Or Apple may end up developing a highly cut back, more open version of its technology in the EU.
The only certainty in this is that we won’t see a conclusion for many years.
Anthony is the founder of Australian Apple News. He is a long-time Apple user and former editor of Australian Macworld. He has contributed to many technology magazines and newspapers as well as appearing regularly on radio and occasionally on TV.