EU Commissioner:

“Problems” with Apple’s implementation of digital law

Competition Commissioner Vestager has identified a number of "very serious" problems with Apple's implementation of the DMA.

(Bild: AP)

EU Competition Commissioner Margrethe Vestager sees considerable problems with Apple's implementation of the new European rules for large online platforms. Among other things, the DMA law forced Apple to allow apps on the iPhone to be downloaded outside its own App Store for the first time.

However, Apple warned that such an opening would increase the risks for users - and linked it to charges and conditions. Critics such as music streaming market leader Spotify accuse Apple of wanting to protect its existing app store business.

In an interview with US broadcaster CNBC on Tuesday, Vestager pointed out that the investigation into Apple's DMA implementation had not yet been completed. At the same time, however, she said that there were "a number of problems". "I think they're very serious." She was surprised that Apple was so strongly suspected of violating the DMA requirements.

Apple initially had no comment on Vestager's remarks on Tuesday. Last week, Head of Marketing Greg Jozwiak confirmed in an interview on "The Talk Show" podcast that many of the requirements ran counter to the security and data protection needs of Apple users. This had to be balanced out. At the same time, he emphasized that there had been "massive efforts by a lot of people at Apple" to meet the requirements.

EU Competition Commissioner Margrethe Vestager

(Bild: AFP)

"Core technology fee"
In March, Apple introduced new terms and conditions for opening the iPhone, including an annual "core technology fee". It amounts to 50 cents for each initial installation of an app after exceeding the threshold of one million downloads in a twelve-month period.

At the same time, developers can also remain in the previous model, in which they continue to distribute their applications only via Apple's App Store. As before, they then pay a levy of 15 or 30 percent of digital revenues within the app.

Obligations not met?
The Financial Times reported last week that the Commission wanted to be the first company to accuse Apple of violating the DMA rules. The Brussels authority had come to the conclusion that Apple was not fulfilling its obligation to direct users to offers from developers outside its own App Store free of charge, according to the report, which cited informed persons.

Violations of the DMA could result in penalties of up to ten percent of annual revenue - and up to twenty percent in the event of repeated violations. As a final option, the companies could also be broken up. In the end, courts could decide on possible penalties.