Apple Says EU’s Digital Markets Act Makes It Harder To Do Business In Europe, Calls For Its Abolition

Apple, Inc. (AAPL) has asked the European Commission (EC) to repeal the Digital Markets Act (DMA) in response to the European Union’s (EU) executive arm’s call for submission of views regarding the act.

The DMA was adopted by the EU in 2022 as a regulatory tool to regulate the power of the most prominent digital companies, including search engines, app stores, and messaging services, to prevent anti-competitive practices.

Apple's stock has declined for two straight sessions after turning green for the year on Monday following positive commentary regarding the uptake of its latest iPhone variants. On Stockwits, retail sentiment toward Apple remained ‘bullish’ (58/100) and the message volume was at ‘high’ levels. The stock is up merely 1% so far this year.

In a statement published late Wednesday, Apple said, “The DMA is impacting many parts of our EU users’ experience on our products — from how they download apps and make app payments, to how their Apple products work together.”

The mandate that requires Apple to make certain features compatible with non-Apple products and apps before sharing them with its users has caused a delay in the launch of some new features in the EU, the company stated. Making these features, which would protect user data, available to non-Apple products and apps requires a lot of engineering work, it added.

The features Apple cited included the Live Translation feature available for AirPods, iPhone Mirroring, which allows users to see and interact with their iPhones from their Mac, and Visited Places and Preferred Routes on Maps.

“And according to the European Commission, under the DMA, it’s illegal for us to share these features with Apple users until we bring them to other companies’ products, Apple said, adding that “if we shared them any sooner, we’d be fined and potentially forced to stop shipping our products in the EU.”

Apple said the “DMA slows us down” and that “our EU users’ experience on Apple products will fall further behind.”

Compliance with DMA with respect to App Store increases risks when downloading apps or making payments, provides a less intuitive experience and allows exposure to harmful apps, the company said.

It noted that DMA lets other companies request access to user data and the core technologies of Apple products. The tech giant also stated that EC’s interpretation of the DMA rules is constantly evolving, making it nearly impossible for companies to determine how to comply with them.

“Over time, it’s become clear that the DMA isn’t helping markets. It’s making it harder to do business in Europe,” Apple said.

In a submission to the EU in response to its request for feedback on the DMA, Apple said, “The DMA should be repealed while a more appropriate fit for purpose legislative instrument is put in place,” a Financial Times report said.

In April, Apple was fined 500 million euros ($588 million) for preventing app developers from directing consumers to cheaper products and services outside the Apple ecosystem.

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