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Tom's Guide
07-05-2025
- Business
- Tom's Guide
New US bill could cause some serious cracks in Apple's walled garden — and allow third-party app stores
(Image credit: Future) Last year saw the EU deliver a major blow to Apple's walled garden, with the Digital Market Act (DMA) forcing the phone maker to allow third-party app stores onto iOS. Apple complied with the legislation only in the EU. But could DMA-style changes happen in the U.S. as well? Kat Cammack, a representative from Florida's 3rd district, has proposed this with the "App Store Freedom Act". The goal here is to "promote competition and protect consumers and developers" by "prohibiting certain anticompetitive practices by dominant app store operators." The bill doesn't mention Apple by name, only mentioning that the rules would target "large app store operators" — those with over 100 million users. That means Google could be in the crosshairs as well, though the third-party app store issue is more or less irrelevant on Android. You may like It's more than just app stores (Image credit: Shutterstock) However, other provisions in this bill affect companies and any other app store that may arise in the coming years. Not only are they required to allow third-party app stores to be installed, but users should also be able to set those app stores as the default. Developers are also supposed to get equal access to development tools, and app stores should allow the use of third-party payment systems. Some mentioned provisions are already in effect, though. One example is allowing users to remove or hide pre-installed apps, which both Apple and Google already do. Breaking any of these new rules could lead to fines by the FTC, with additional penalties up to $1 million per violation. It's not quite the financial hit as the DMA allows fines up to 10% of a company's global revenue — with that maximum rising to 20% for repeated infringements. But it's better than nothing. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. What this means (Image credit: Tom's Guide) The crucial thing about this isn't that this is potential federal legislation. While certain states have implemented rules about technology, such as California's right to repair bill, these rules would affect the entire United States. If it passes through all the wheels of government and the White House unchanged, it would be a serious blow for big tech companies — especially Apple. Thanks to recent court rulings, the company has already had to make some rule changes about App Store payments, but putting those rules into law would be a huge blow to Apple's walled garden. Whether that will actually happen is another matter entirely. Turning a bill into a law takes time, and in the process, various things can and do change. So we'll have to wait and see how this one plays out over the coming months. More from Tom's Guide
The Citizen
26-04-2025
- Business
- The Citizen
EU fines Apple and Meta millions for digital violations
EU spokesperson Thomas Regnier said both Apple and Meta have 60 days to comply or face even higher fines. Both Apple and Meta have 60 days to comply or face even higher fines. Picture: Canva The European Union (EU) has announced a €700 million fine on both Apple and Meta for the violation of digital competition rules. The EU accuse the two US tech giants of breaching the recently passed Digital Markets Act (DMA). Apple and Meta fines EU spokesperson Thomas Regnier said both Apple and Meta have 60 days to comply or face even higher fines. 'So today, the commission has imposed fines of 500 million euros to Apple and 200 million euros to Meta for breaching the Digital Market Act. Now, Apple is indeed breaching its anti-steering obligations under the DMA by imposing a number of restrictions on app developers to steer their customers to alternative offers outside the Apple App Store. 'Meta, with its binary pay or consent advertising model, is breaching the DMA obligation to give consumers the choice of a service that uses less of their personal data,' Regnier said. Apple might have to remove technical and commercial restrictions that prevent app developers from steering users to cheaper deals outside the App Store. ALSO READ: Google to study Competition Commission report on R500m payment After numerous exchanges with the Commission, Meta introduced another version of the free personalised ad model in November last year, offering a new option that uses less personal data to display advertisements. The Commission is currently assessing this new option and continues its dialogue with Meta, requesting the company to provide evidence of the impact of this new 'less ads' model in practice. Regnier added that the fines for Apple and Meta are the first ones under the DMA. WATCH: Apple apologises for controversial iPad Pro 'crush' ad Meta and Apple react angrily The two tech firms have reacted angrily, with Meta accusing the EU of 'attempting to handicap successful American businesses' and Apple saying it was being 'unfairly targeted' and forced to 'give away our technology for free.'+ The EU started both investigations last year under a new law brought in to promote fairness in the tech sector. ALSO READ: Zuckerberg downplays Meta's alleged abuse of power to acquire Instagram and WhatsApp [VIDEO]
Business Mayor
24-04-2025
- Business
- Business Mayor
Can European digital and tech regulatory environment sustain competitiveness and security?
On Wednesday, 23 April, two US tech giants received the first fines from the European Commission under the Digital Market Act: a €500 million fine for Apple for breaching App Store rules and a €200 million one for Meta for no-advertising charge on its consumers. These fines follow the 2024 surcharges for tech companies and pose a question: is the European Commission trying to ensure a better digital market environment for the EU consumers or is it unintentionally pushing out the companies to create room for the local business? A significant portion of the digital technologies and services the EU needs are designed and manufactured abroad. Only 13 percent of high-value startups are based in Europe, and only three of the top 50 ICT companies are European. Moreover, key digital milestones, such as 5G coverage, cloud adoption by SMEs, and digital skills penetration, remain far below the targets set for 2030. There are three main barriers to Europe's progress: a persistent startup funding gap, fragmented capital markets, and an overly complex regulatory environment. While EU-wide investment in digital technologies has increased tenfold from €39.3 billion to €389.3 billion over the past decade, it still falls short of the US total of €1.1 trillion. Consequently, it is twice more difficult for the European startups to secure substantial venture rounds compared to their American counterparts. Therefore, more innovators keep moving across the Atlantic to seek better environment for their venture ideas. Even those who manage to attract capital in Europe face an administrative hurdle. With 27 national rulebooks with different licensing procedures, VAT regimes, and reporting schedules, startups face overlapping obligations, repetitive filings, and unpredictable compliance costs. This regulatory maze slows startups down and makes it more difficult for them to stay flexible and responsive. For example, since 2020, the share of SMEs that use cloud services has grown by only 7 percent, far below the 75 percent goal. Similarly, digitalisation among smaller firms has grown by only 2.5 percent, nowhere near the ambitious target of doubling the number of high-value startups. Recognising the drag on Europe's tech ecosystem, in February 2025, the European Commission presented its 2025 Work Programme — a set of 51 policy initiatives in the ambition to build a strong, secure, and prosperous Europe. It includes a new Single Market Strategy with a proposal for a pan-European venture capital fund, harmonised VAT rules, and lower company formation fees, and the Digital Omnibus, which is expected to come into force in Q4 2025, with clearer cybersecurity laws and modernised frameworks for data sharing. Additionally, a Startup and Scaleup Strategy looks to establish a unified framework for IP rights and cross-border talent mobility. However, these initiatives must be integrated into a comprehensive Europe-wide digital rulebook applied across all 27 member states. Imagine one compliance portal where all filings, licenses, and certifications are submitted online, with instant status updates and risk-based fees replacing manual paperwork. Or a mutual recognition mechanism ensuring that any approval granted in one member state is valid across all twenty-seven. Or a single digital regulatory network where fintech ventures, AI developers and quantum researchers can test innovations under one transparent set of rules, both for business incorporation, taxation and reporting, hiring talent, and dispute resolution. Together, these reforms would transform bureaucracy from an obstacle into a catalyst for growth. This framework would demonstrate that high standards and rapid innovation are mutually reinforceable rather than mutually exclusive. Streamlined rules would also bolster Europe's strategic autonomy in critical supply chains, particularly semiconductors. The European Chips Act and the Chips Joint Undertaking aim to mobilise over €43 billion and double Europe's global market share to 20 percent by 2030. Yet, without administrative reform to match these funding commitments, new factories will face permitting limbo, and investment will flow to jurisdictions with clearer and more predictable frameworks. Aligning financial support with regulatory simplification is the only way to catalyse the large-scale manufacturing capacity that is essential for technological independence. Europe stands at a critical juncture. The disparity between its aspirations and reality lies not in the realm of ideas or research capabilities, but rather in the intricate administrative framework and its strained approach to the foreign competitors. Since the Trump administration took office, the disparity in EU-US relations has reached the new heights. Still, as much as the tariff uncertainty deepens the divide, this transatlantic relationship needs to become stronger, especially in the digital and tech sectors. The risk of losing its brightest potential to the friends across the Atlantic goes hand in hand with the risk of losing a significant share of the biggest providers for the European consumer. And in the blink of an eye, China will risk to the occasion to take advantage of the opportunity to plant its roots deeper in the EU. The window of opportunity is narrow as international competitors intensify their pace of progress. Europe must make a bold choice: either embrace radical simplification or resort to incremental adjustments. Ultimately, it must demonstrate its ability to be both a champion of high standards and a formidable force for innovation, solidifying its position as a global leader in the digital age. B&K Agency has recently released its report Europe's Digital Future. Strengthening Competitiveness and Security , offering a detailed analysis of the challenges and opportunities facing Europe in navigating the digital age. Explore the findings here. Julia Kril is the Executive Director at B&K Agency.
Euronews
23-04-2025
- Business
- Euronews
EU fines Apple and Meta under digital rules amid trade spat
ADVERTISEMENT The European Commission on Wednesday fined tech giants Apple and Meta for non-complying with the Digital Market Act (DMA) on Wednesday, at risk of aggravating the current trade tensions with the US. The tech giants have hit back signalling intent to appeal the fines and casting the EU regulatory as akin to tariffs. The fines were at the lower end of the scale the Commission could levy, however, and the executive has also closed two cases targeting the same companies. The Commission fined Apple €500 million after finding it was preventing developers from freely communicating with consumers and steering them to alternative channels for offers and content. On top of the fine, the Commission imposed a cease-and-desist order to ensure effective compliance from Apple. The executive fined Meta €200 million claiming its 'pay or consent' advertising model doesn't comply with the DMA as it implies a binary choice that forces users to consent to give their personal data to target advertising unless they pay a subscription. These fines are relatively low, considering EU legislation provides for fines of up to 10% of annual turnover for breaches of the DMA. But according to an official, 'gravity, duration and recurrence' of the violation were taken into account and, since the DMA is relatively new legislation, the duration criteria did not apply. The Commission also closed two cases: one probe into Apple for failing to allow changes of browser choice screens for users; a second following the executive's decision that Facebook Marketplace was not a core platform service falling under the DMA. "Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms," said EU Competition Commissioner Teresa Ribera in a statement. Since his return to power and backed by Big Tech CEOs, US President Donald Trump has put pressure on the EU over its digital regulations, accusing the Commission of taxing US tech enterprises. The EU insists that the DMA and its sister regulation the Digital Services Act (DSA) are agnostic non-discriminatory regulations that are not up for discussion in the scope of negotiations surrounding trade tariffs, while the US administration has signalled that it views them as non-tariff barriers to trade that should be on the table in those talks. Apple has announced it intends to appeal the Commission fine. 'Today's announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,' an Apple representative commented. 'The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,' Meta's Chief Global Affairs Officer Joel Kaplan, claimed, adding: 'This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.' Apple and Meta are required to comply with the Commission's decisions within 60 days, otherwise they risk periodic penalty payments. The fine imposed to Meta concerns the period from March 2024 to November 2024, by which time the company had introduced changes to its ads model, which are still being assessed by the EU enforcer. ADVERTISEMENT In a last case, the Commission has also charged Apple with failing to comply with the DMA by hindering users from downloading alternative app stores and apps from the web. The investigation of this case continues.
Time of India
23-04-2025
- Business
- Time of India
European Union fines Apple 500 million euros, Meta 200 million in separate cases
The European Union (EU) fined big tech firms, Apple and Meta, for 500 million euros and 200 million euros respectively on Wednesday, according to the Associated Press. The decision came as a result of the enforcement of the EU's digital competition rules- the Digital Market Act (DMA). Apple has been fined for preventing application makers from directing users to more affordable options outside the App Store. Meanwhile, Meta was fined €200 million for forcing Facebook and Instagram users to either consent to personalized ads or pay to avoid them—limiting users' freedom of choice. The penalties are announced under the DMA of the European Union. Henna Virkkunen, the Commission's executive vice-president for tech sovereignty said, "the DMA aims to function so that citizens have full control over when and how their data is used online, and businesses can freely communicate with their own customers.' Virkkunen added, "the decisions adopted today find that both Apple and Meta have taken away this free choice from their users and are required to change their behavior." The rulings were initially anticipated in March, but officials reportedly delayed them due to rising tensions in the trans-Atlantic trade relationship, as U.S. President Donald Trump continued to criticize EU regulations targeting American tech firms, the report said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Co-Founder of Google Brain, Andrew Ng, Is Reported To Have Read Every... Blinkist: Andrew Ng's Reading List Undo Apple responded by accusing the Commission of unfair treatment, stating it has already invested substantial resources to comply with the new law. Meta's global affairs chief, Joel Kaplan, criticized the ruling as biased, claiming the EU is 'handicapping successful American companies while holding others to different standards.' Though smaller than previous antitrust fines targeting big tech, these penalties signal the EU's intensified efforts to enforce the DMA, which aims to curb monopolistic practices and rebalance digital markets. The Digital Market Act of the EU is a comprehensive framework of regulations aimed at increasing consumer and business choice while preventing Big Tech "gatekeepers" from dominating digital markets. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
