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EU prepares for a showdown with Apple and Meta

by on21 March 2024


The Good, the bad and the ugly

EU's competition watchdog, Margrethe Vestager, has issued a stark warning to tech titans Apple and Meta regarding their latest fee structures, suggesting they could stifle the consumer freedoms promised by the Digital Markets Act (DMA).

The DMA is designed to empower users with more choices, but these new fees could be a spanner in the works.

In a January announcement, Jobs’ Mob unveiled a series of changes aimed at aligning with the EU's groundbreaking tech laws, which demand that the company's traditionally exclusive ecosystem be made accessible to competitors.

However, the introduction of a core technology fee – a charge of 50 euro cents per user account annually – has sparked a backlash among major app developers, including the creators of Fortnite, Epic Games.

This fee is applicable even if developers bypass Apple's payment services.

Vestager has zeroed in on these developments, indicating that such fees could effectively deter companies from using the DMA's advantages.

"We're particularly intrigued by whether Apple's new fee setup will essentially negate the DMA's intended benefits. It's precisely this sort of issue we intend to scrutinise," she told Reuters.

The move has set the stage for a potential showdown between the EU's antitrust body and the Silicon Valley giants, as the bloc seeks to ensure its legislation delivers the promised increase in competition and choice for European consumers.

Last modified on 21 March 2024
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