EU Competition Commissioner: Apple violations of new rules likely "very serious"

To comply with the new EU rules, Apple had to open up the iPhone. The small print has once again brought the competition authorities onto the scene.

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3 min. read
This article was originally published in German and has been automatically translated.

Brussels is once again rattling its sabres at Apple: the EU has identified a number of problems at Apple that it considers to be "very serious", EU Competition Commissioner Margrethe Vestager told CNBC on Tuesday. She was "very surprised" that such suspicions of irregular behavior by the company had been found.

Since March, Apple and other IT giants classified as gatekeepers have had to comply with the new regulations. Apple has therefore opened up its iOS to alternative app stores and sideloading in the EU, but has also imposed restrictions and new terms and conditions.

A lot of "good business" happens in the App Store and through payment systems, which is why Apple is "very important", noted the Competition Commissioner. Accordingly, the EU will enforce the new regulations with "the highest priority". She hopes that the results of the ongoing investigations against Apple will soon be available.

The specific objections the regulators intend to raise against Apple remain open for now. The EU is examining several changes that Apple has made in order to comply with the rules of the Digital Markets Act (DMA). These include whether developers and app providers can refer to cheaper subscription and purchase options on the web free of charge. Apple also charges only a slightly reduced commission on purchases on the web- if these are made from links in apps.

Apple's "Core Technology Fee", which has been controversial since its introduction and is charged according to app installations, has also been criticized since its introduction. Once the objections have been published, Apple will have time to make improvements - or face very high penalties.

Since the forced opening of iOS in March, relatively little has happened so far. A few alternative app stores are now available, but often only for a limited audience. Apple is also reportedly actively blocking the distribution of other apps that have been stuck in the manufacturer's review process for weeks. Apple also still seems to simply not want some apps on its platform, such as virtualizers – this hardly seems compatible with the rules of the DMA. App distribution via sideloading is not yet available, the hurdles are obviously far too high.

There now seems to be movement on iPhone wallets: Apple and the EU have probably been able to agree on the conditions for releasing the iPhone's NFC interface, as the Financial Times reported on Tuesday. Apple has held out the prospect of also allowing other banking apps and wallets to use NFC for payment transactions. This has so far been reserved for Apple Pay and has been classified as anti-competitive by the EU.

(lbe)