Apple, Other US Tech Giants May Prefer Fines to Compliances: EU Antitrust Chief Margrethe Vestager

"Some gatekeepers may be tempted to play for time or try to circumvent the rules," Vestager said.

By Reuters | Updated: 24 February 2022 12:21 IST

Apple, Other US Tech Giants May Prefer Fines to Compliances: EU Antitrust Chief Margrethe Vestager

ACM imposed a EUR-5-million (roughly Rs. 40 crore) fine on Apple on Monday

Highlights

Vestager has proposed landmark rules called the Digital Markets Act
DMA targets Google, Amazon, Apple, Facebook, and Microsoft
Requirements would be that Apple allow third parties to access App Store

Some US tech giants may prefer to pay a fine rather than comply with antitrust rules, the European Union's antitrust chief said, and cited Apple's fight with the Netherlands' competition authority as an example.

The Dutch Authority for Consumers and Markets (ACM) imposed a EUR-5-million (roughly Rs. 40 crore) fine on Apple on Monday, the fifth such penalty in successive weeks, linked to claims Apple does allow access to non-Apple payment methods for subscriptions to dating apps.

European Commission Vice President and digital chief Margrethe Vestager said Apple's behaviour could indicate other big companies behave similarly.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

"Some gatekeepers may be tempted to play for time or try to circumvent the rules," she said in an online speech at a US awards ceremony on Tuesday.

"Apple's conduct in the Netherlands these days may be an example. As we understand it, Apple essentially prefers paying periodic fines, rather than comply with a decision of the Dutch Competition Authority on the terms and conditions for third parties to access its App Store."

Contacted by Reuters, Apple referred to a February 3 blog post, which said it is required to make the mandated changes to satisfy its legal obligations in the Netherlands while helping to protect users from increased risks.

Apple Store Workers in the US Working to Unionise: Report

Vestager has proposed landmark rules called the Digital Markets Act that targets Alphabet's Google, Amazon, Apple, Facebook, and Microsoft and which could come into effect next year.

One of its requirements would be that Apple allow third parties to access its App Store. Apple's App Store condition that app developers exclusively use its payment system with commissions of 30 percent has come under scrutiny in several countries, most recently the United States.

Can Realme 9 Pro and 9 Pro+ win their respective segments? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.