Tag: Regulatory Compliance

Highlights EU considers formal investigation into Apple's web app restrictions. Apple aims to comply with Digital Markets Act by disabling progressive web apps. Potential fines for Apple could reach up to 20% of annual turnover for non-compliance. Apple introduces changes to iOS software in Europe to meet DMA requirements. The European Union is escalating its examination of Apple following the company's announcement to restrict access to certain web-based applications, marking a significant move towards a formal investigation. As per a report by The Financial Times, This inquiry focuses on Apple's decision to limit the use of progressive web apps (PWAs) in the EU—a move that bypasses the tech giant's official App Store. Developers were surveyed last week by the EU's competition regulators to assess the impact of Apple's decision, indicating the preliminary stages of a comprehensive investigation. Impact on Developers and EU's Response Impact on Developers and EU's Response Apple's forthcoming policy to disable PWAs within the EU is aimed at aligning with the Digital Markets Act (DMA). The company argues that this measure is necessary to protect users from security and privacy risks that could arise when using browsers other than its Safari. However, this decision is also viewed as an attempt to prevent developers from circumventing the App Store's 30% commission on purchases. The European Commission has acknowledged its efforts to review the compliance of all "gatekeepers," including Apple, especially concerning PWAs, highlighting a broader scrutiny under the DMA's framework. Apple's Position and Broader Implications Apple's Position and Broader Implications Despite Apple's rationale that its decision will impact only a minority and is regrettable for developers and users alike, the move has drawn criticism for potentially stifling competition and innovation. This controversy comes as the EU prepares to impose significant fines on Apple for separate violations related to its music streaming services, underlining the intensifying regulatory challenges the company faces. Apple has made concessions, like allowing alternative app downloading sources and payment systems, yet critics argue these changes come with prohibitive fees that deter competition. The EU's firm stance, with potential fines up to 20% of annual turnover for repeat offenses, signals a tough road ahead for tech giants aiming to navigate the DMA's regulations. FAQs What is the EU investigating about Apple? The European Union is investigating Apple for its decision to restrict access to progressive web apps (PWAs) that bypass its App Store, aiming to assess the impact of these restrictions under the Digital Markets Act. Why is Apple disabling progressive web apps in the EU? Apple claims the move to disable PWAs in the EU is to protect users from security and privacy risks when using non-Safari browsers, and to comply with the new Digital Markets Act requirements. What could be the consequences for Apple due to the EU investigation? If found non-compliant with the Digital Markets Act, Apple could face fines up to 10% of its annual turnover, which could increase to 20% for repeat offenses. How is Apple responding to the EU's Digital Markets Act? Apple has made changes to its iOS software in Europe, allowing for alternative app downloads and payment systems, though critics argue these changes are accompanied by prohibitive fees. What are progressive web apps and why are they important? Progressive web apps (PWAs) are web applications that function like native apps on mobile devices, important for developers seeking to avoid app store commissions and for users seeking more accessible app options. Also Read: Apple’s Phil Schiller Warns of Privacy Risks with Third-Party App Marketplaces in EU Also Read: EU To Slap a $539 Million Fine on Apple Over App Store Policies Also Read: EU Launches Formal Investigation into TikTok for Potential DSA Violations

Tag: Regulatory Compliance

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