European Commission Investigates Apple and Meta for Potential DMA Violations: App Store Fees and Ad-Free Subscriptions

Brussels, Brussels-Capital Region, Belgium Belgium
Apple under investigation for 'steering' rules charging developers commission for directing users to third-party purchase options
Both companies designated as gatekeepers by EU, required to comply with certain rules regarding core platform services they offer
DMA went into effect earlier this year following investigations into several tech companies including Alphabet, Amazon, ByteDance (Meta), and Microsoft
European Commission investigating Apple and Meta for potential DMA violations
If found in violation, Apple could face daily penalties of up to $50 million
Meta's charges revolve around ad-free subscription services on Facebook and Instagram in EU
European Commission Investigates Apple and Meta for Potential DMA Violations: App Store Fees and Ad-Free Subscriptions

Apple and Meta are under investigation by the European Commission for potential violations of the Digital Markets Act (DMA). Apple is being targeted over its 'steering' rules that charge developers for directing users to third-party purchase options. Meta's charges will reportedly revolve around its ad-free subscription services on Facebook and Instagram in the EU. Both companies have been designated as gatekeepers by the EU and are required to comply with certain rules regarding core platform services they offer. If found in violation, Apple could face daily penalties of up to $50 million. The DMA went into effect earlier this year, following investigations into several tech companies including Alphabet, Amazon, ByteDance (Meta), and Microsoft.

Apple's App Store rules have been a point of contention for some time. The company requires apps to use its own purchase system for in-app transactions and collects a 30% commission or 15% for smaller businesses. This has led to criticism from developers, who argue that it stifles competition and drives up costs for consumers. Apple's App Store Guidelines also prohibit the use of external payment systems, such as Oracle Ads, which further limits options for developers.

The EU is not the only regulatory body taking action against Apple's App Store rules. In 2020, Epic Games filed a lawsuit against Apple in the US over similar issues. The case went to trial earlier this year and Judge Yvonne Gonzalez Rogers ruled in favor of Epic, stating that Apple's App Store practices violated antitrust laws. However, the US Ninth Circuit Court of Appeals overturned parts of that ruling in May 2023.

Apple's dominance extends beyond its App Store. The company has a significant presence in various markets around the world, including Japan, Russia, Netherlands, and South Korea. Its market power has been a topic of concern for regulators and policymakers alike.

Meta's investigation comes as the company faces increased scrutiny over its data collection practices and its role in spreading misinformation on its platforms. The EU is also reportedly considering new regulations to address these issues, including potential fines for companies that fail to remove hate speech or other harmful content from their platforms.

It remains to be seen how the European Commission's investigations into Apple and Meta will unfold. However, one thing is clear: the tech industry is facing increased scrutiny from regulators around the world, and companies must adapt to new rules and regulations in order to remain competitive.



Confidence

91%

Doubts
  • Are there any ongoing legal challenges to the European Commission's investigation of Apple and Meta?
  • What specific DMA rules have Apple and Meta allegedly violated?

Sources

90%

  • Unique Points
    • Apple is the first Big Tech group to face charges under EU digital law
  • Accuracy
    • ]The first Big Tech group to face charges under EU digital law[/
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

94%

  • Unique Points
    • The European Commission is preparing to file charges against Apple for allegedly violating Europe’s Digital Markets Act (DMA) with its ‘steering’ rules.
    • Apple has been designated a gatekeeper for iOS, iPadOS, Safari, and the App Store by the EU.
    • Three people familiar with the commission’s investigation have confirmed that Apple has failed to meet the requirements of the DMA.
    • If charged and found in violation, Apple could face daily penalties of up to $50 million.
    • Apple requires apps to use its own purchase system for in-app transactions, collecting a 30% commission or 15% for smaller businesses.
  • Accuracy
    • ]The European Commission is preparing to file charges against Apple for allegedly violating Europe's Digital Markets Act (DMA) with its 'steering' rules.[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

  • Unique Points
    • Apple is being targeted over its 'steering' rules that charge developers for pointing to third-party purchase options.
    • Meta’s charges will reportedly revolve around its ad-free subscription for Facebook and Instagram in the EU.
  • Accuracy
    • Meta's charges will reportedly revolve around its ad-free subscription for Facebook and Instagram in the EU.
    • Apple is set to be charged first and the charges could be announced in the coming weeks.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article reports on potential charges against Apple and Meta for violating EU tech rules without committing the logical fallacy of false authority. However, it does use inflammatory rhetoric by referring to the companies as potentially facing 'charges', which could imply criminal wrongdoing. It also presents dichotomous depictions by stating that Apple is being charged for its 'steering' rules and Meta for its ad-free subscription without providing nuanced explanations. Additionally, it uses a quote from Reuters without attribution, which may lead to confusion.
    • . . . the Commission is planning to charge Apple, and Reuters reported later that Meta could be charged as well.
    • Apple is set to be charged first, Reuters reports, and the FT says we could see the charges in the coming weeks.
    • The charges follow the Commission opening DMA non-compliance investigations into Apple, Meta, and Alphabet in March.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication