Apple has taken steps to avoid potential fines and regulatory action from European authorities due to its iPhone browser settings. The company has updated its software settings to comply with EU regulations designed to curb the dominance of major tech firms, Reuters reports, citing informed sources.
In March last year, the European Commission launched a review of Apple’s compliance with the Digital Markets Act (DMA), with the results expected early next week. Officials are assessing whether Apple has restricted iPhone users from selecting a browser other than Safari or a search engine other than Google. The decision comes amid strained relations between Europe and the U.S., with former White House chief Donald Trump previously threatening tariffs against countries that penalize American companies.
EU’s Digital Markets Act and Potential Penalties
The DMA outlines specific rules for large tech companies, aiming to enhance competition by making it easier for users to switch between social networks, browsers, and app stores. It also seeks to open the market to smaller competitors. Companies found in violation of the law may face fines of up to 10% of their global annual revenue.
Once the investigation concludes, the European Commission may impose fines on both Apple and Meta for DMA violations. Additionally, it could mandate corrective measures to ensure compliance with the law.
Further Investigations Into Apple and Meta
Regulators are also examining whether Apple has hindered developers from informing mobile app users about alternative payment options for digital goods and services outside the App Store, adds NIX Solutions. Meanwhile, Meta is under scrutiny for introducing a paid subscription for ad-free social networks in Europe in November 2023, with officials arguing that users should have access to free alternatives.
We’ll keep you updated as more details emerge on these investigations and potential regulatory actions.