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Home Market dynamics

Apple's non-provision of "Apple Intelligence" services within the EU could be deemed by the EU to be a violation of fair competition.

Author: Mash Yang
2024-06-29
in Market dynamics, Life, apple, observe, software
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Apple previously stated that it was considering whether the EU Digital Markets Act might affect its service privacy policy.There are currently no plans to roll out the "Apple Intelligence" service within the EU.According to Margrethe Vestager, the EU Competition Commissioner, who recently attended the European Defense Industrial Strategy and European Defense Investment Plan event, believes that Apple's moveWill involve violations of fair competition.

Apple's non-provision of "Apple Intelligence" services within the EU could be deemed by the EU to be a violation of fair competition.

Because the EU Digital Markets Act requires companies listed as "gatekeepers" to share data fairly with developers and competitors so that such data can be used transparently, Apple currently believes that this regulation will affect the personal privacy of its users. Therefore, it has no plans to provide "Apple Intelligence" services within the EU.

However, from the perspective of EU Competition Commissioner Margrethe Vestager, it is clear that Apple intends to circumvent the requirements of the Digital Markets Act, which may affect the EU's rights to use Apple products.

Currently, under the requirements of the EU Digital Markets Directive, Apple must open up third-party software markets within the EU and also allow users to conduct transactions through third-party payment methods within the App.Preliminary determination that Apple violated the Digital Markets Act, may become the first technology company to face a fine of 10% of its annual revenue under the Digital Markets Act.

Apple still has time to improve its practices, and a final ruling will be issued before March 2025. If the EU still finds Apple in violation of digital market regulations, it could face a fine of at least $3 billion, based on Apple's full-year 2023 revenue. If Apple is found to have failed to improve, the fine could double.

In addition to Apple, technology companies including Google, Meta, and Amazon have also been listed as "gatekeepers" by the EU, and may therefore face stricter supervision and restrictions to avoid affecting industrial competition within the EU, but this may also trigger a backlash from many technology companies.

Tags: AIappleApple IntelligenceDMAEUMargrethe VestagerArtificial wisdomDigital Markets ActEuropean Union
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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