Apple Faces ‘Serious’ Issues Under EU Rules, Says Competition Chief

Apple has numerous “very serious” issues under the European Union’s Digital Markets Act, according to competition chief Margrethe Vestager, who noted that the European Commission opened a probe in March to address concerns about Big Tech’s power

Following reports that regulators are preparing charges against the iPhone maker, Margrethe Vestager, the European Union’s competition chief, informed CNBC on Tuesday that Apple has numerous “severe” issues under the bloc’s sweeping rules aimed at reining Big Tech.

In March, the European Commission, the executive branch of the EU, initiated an investigation into Apple, Alphabet, and Meta by the comprehensive Digital Markets Act technology legislation implemented this year.

The investigation raised several concerns regarding Apple, such as whether the technology giant is preventing businesses from informing their consumers about cheaper product alternatives or subscriptions unavailable on the App Store.

“We are experiencing several Apple-related issues, which I regard as extremely grave.” In an interview with Silvia Amaro of CNBC, Vestager expressed her astonishment at the suspicions regarding Apple’s compliance level.

Apple did not immediately respond to CNBC’s request for comment.

Apple is paramount because significant business is conducted through the App Store and payment mechanisms.

Even though this is not by the expectations of a company of its caliber, we will enforce the same standards with the same level of urgency as any other business.

Vestager also stated that the investigation’s findings will be disclosed “hopefully shortly.”

The comments are in response to the Financial Times report last week that Brussels intends to charge Apple under the Digital Markets Act in connection with the investigation.

The report cited three individuals with direct knowledge of the investigation. According to the Financial Times, the accusations would be preliminary, and Apple could take measures to alleviate the regulators’ concerns.

CNBC was unable to verify the report independently.

Apple could be subject to fines of up to 10% of its worldwide annual turnover if it violates the Digital Markets Act.

To balance the playing field within the 27-nation bloc, Vestager has prioritized limiting the influence of extensive technology corporations during her decade-long tenure as the EU’s Competition Commissioner.

She directed several of the most significant investigations into technology companies, including Alphabet, Google’s parent company, and imposed billion-dollar fines on these tech titans.

An antitrust investigation into Microsoft’s bundling of its video and messaging app Teams with other Office products is among the numerous ongoing investigations as she prepares to depart the office.

Vestager expressed her eagerness to take a break as her mandate concludes.

Vestager stated, “I may rest for a month or so, as this has been a highly charged decade.” “I am somewhat anticipating the commencement of a new chapter.”