The European Commission is taking steps to ensure that online gatekeepers, including Apple, comply with the Digital Markets Act (DMA) to prevent them from dominating digital markets and blocking out rivals. Apple is being required to provide free and effective interoperability to third-party developers and businesses in order to promote fair competition in the digital sector. This includes ensuring that Apple devices work with other smartwatches, headphones, and virtual reality headsets, rather than restricting competition to favor its own products like AirPods or Apple Watch. The Commission is using specification proceedings under the DMA to guide Apple towards compliance through constructive dialogue.
This move by the European Commission is the first time they are using specification proceedings under the DMA to ensure effective compliance with interoperability obligations for a large digital platform like Apple. This process aims to provide clarity for developers, third parties, and Apple, while consulting with all parties involved to ensure that the proposed measures work in practice and meet the needs of businesses. The Commission wants to ensure that Apple addresses requests for interoperability submitted by developers to ensure third-party devices work smoothly with Apple’s system. This dialogue with Apple is important in order to prevent any breach of the DMA and maintain fair competition within the digital market.
The European Commission previously stated that Apple was breaching the DMA with its App Store rules that prevented app developers from freely guiding consumers to alternative channels for content. These restrictions led to an investigation by the European Commission which found that Apple was imposing unfair charges on non-Apple music streaming services through its app store. As a result, Apple was fined €1.8 billion and a coordinated class action was launched by Euroconsumers in Belgium, Italy, Spain, and Portugal to recover funds for over 500,000 victims affected by these unfair charges. The Commission could potentially open a non-compliance decision against Apple before next March if the tech giant fails to address the issues raised.
Overall, the European Commission is taking a proactive approach to ensure that large digital platforms like Apple comply with the DMA and do not use their dominance to stifle competition in digital markets. The Commission’s goal is to promote fair and equal opportunities for all players in the digital sector, including third-party developers and businesses. By using specification proceedings and engaging in dialogue with Apple, the Commission hopes to guide the tech giant towards effective compliance with interoperability obligations and prevent any breaches of the DMA. The actions taken by the Commission serve as a reminder to all online gatekeepers that they must adhere to the rules set forth in order to maintain a level playing field in the digital market.
