EU warns Apple against breaching digital competition rules amid Big Tech regulatory efforts

Key Points

• • The European Union has warned Apple that its App Store practices breach digital competition rules.
  • This warning is part of the EU’s broader regulatory efforts against Big Tech.
  • The European Commission imposed over 10 billion euros in fines on tech giants for anti-competitive practices.
  • Apple recently faced a 1.8-billion-euro ($1.9 billion) fine for restricting access to cheaper music streaming services.

 

The European Union (EU) has issued a stern warning to Apple, alleging that the tech giant’s App Store practices violate digital competition laws. This latest action forms part of the EU’s broader strategy to regulate major technology companies, addressing issues from market dominance and data privacy to taxation and disinformation.

Cracking Down on Competition: Big Tech Under Fire

Over the past few years, the European Commission has aggressively pursued tech giants, imposing over 10 billion euros in fines for anti-competitive practices.

Apple’s recent troubles add to this tally, following a 1.8-billion-euro ($1.9 billion) penalty imposed three months ago for restricting European users’ access to cheaper music streaming services, according to a report by AFP.

Google has faced the largest individual antitrust fine to date, with a penalty exceeding four billion euros in 2018 for leveraging its Android operating system to boost its search engine.

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Additional fines for its conduct in the online shopping and advertising markets highlight the EU’s rigorous enforcement of competition laws. The European Commission has even recommended that Google divest parts of its business and warned of potential fines up to 10 per cent of its global revenue for non-compliance.

Data Privacy: The Heavy Hand of Regulation

Ireland, hosting the European headquarters of many major tech firms, has become a focal point for data privacy enforcement.

The Irish Data Protection Commission recently fined TikTok 345 million euros for mishandling children’s data, shortly after imposing a record 1.2-billion-euro penalty on Meta for illegal data transfers between Europe and the United States. Previously, Luxembourg had set a precedent with a 746-million-euro fine on Amazon for data privacy violations in 2021.

Taxation: Pursuing Fair Contributions

Efforts to compel tech companies to pay their fair share of taxes in Europe have faced significant challenges. Many firms channel profits through low-tax jurisdictions like Ireland and Luxembourg.

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In a landmark case in 2016, the European Commission ordered Apple to pay Ireland 13 billion euros in back taxes, ruling that a favourable tax arrangement was illegal. However, EU courts later overturned this decision, citing a lack of evidence that Apple had broken any rules.

The commission is appealing this ruling and another involving Amazon, which was ordered to repay 250 million euros in back taxes to Luxembourg.

Combating Disinformation and Hate Speech

The EU has enacted the Digital Services Act (DSA) to address the proliferation of disinformation and hate speech online. This legislation mandates that digital platforms take robust action against these issues or face fines of up to six per cent of their global turnover.

Also read: Apple seeks rival Meta’s help to enhance ‘Apple Intelligence’

The EU has already initiated investigations into Facebook and Instagram for inadequate handling of election-related disinformation and warned Microsoft about potential violations related to falsehoods generated by its AI search engine.

These actions reflect the EU’s commitment to maintaining the integrity and transparency of online information.

Fair Compensation for News Content

Accusations have been levelled at tech giants like Google for profiting from news content without adequately compensating the creators. In response, the EU introduced “neighbouring rights,” which allow print media to demand payment for their content used online.

France has been a leader in enforcing these rules, securing agreements from Google and Facebook to pay French media outlets for articles displayed in search results.

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