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The Digital Markets Act (DMA) has just been officially passed by the European Commission (EC), listing numerous companies and technology services violating monopolies, requiring adjustments for these companies to continue operations. Regarding Apple, EC states that iMessage does not violate monopoly rules, but App Store, iOS, and Safari do. Investigations continue with iPadOS.
The listed companies are considered gatekeepers and their services. EC states they will continue updating and adding to this list.In light of recent developments, Apple finds itself at a crossroads regarding its operations in Europe. With impending regulatory changes, Apple has a six-month window until March 2024 to ensure compliance. Failure to do so could result in substantial penalties under the DMA, amounting to at least 10% of global revenue, potentially rising to 20%. Apple's third-quarter revenue stood at $81.8 billion.A pivotal concern revolves around the ability to sideload apps and utilize third-party payment platforms within Apple's ecosystem. Currently, Apple restricts sideloading and mandates that all in-app purchases go through its payment gateway, entailing a 30% cut. While some tech firms have contested Apple before the EC, success has eluded them.Apple is poised to take decisive action in the coming months, whether through adjustments to the App Store, Safari, or iOS, or by pursuing appeals or grievances with the EC. However, the likelihood of success in such appeals is uncertain given the regulatory landscape. The prospect of sideloading outside apps remains ambiguous, possibly restricted to the European market and excluding global implementation. Companies like Spotify, Netflix, and Epic stand to benefit from potential revenue-sharing exemptions.
The timeframe within which companies must adhere to DMA regulations.Sources: BGR, EC Europa
