November 22, 2024

EU Says Apple Would Rather Pay Periodic Fines Than Comply With App Store Regulation

Posted February 23, 2022 at 4:14pm by iClarified · 3878 views
Executive Vice President of the European Commission Margrethe Vestager said that Apple would rather pay periodic fines than comply with App Store regulation in a recent speech on the Data Act.

Specifically, Vestager pointed out that Apple has been accumulating fines in the The Netherlands for not adequately allowing dating apps to use third party payment solutions. She noted that for legislation to be enforceable, it must be clear and to the point.

Effective enforcement, which includes the Commission having sufficient resources to do so, will be key to ensure compliance. Some gatekeepers may be tempted to play for time or try to circumvent the rules. Apple’s conduct in the Netherlands these days may be an example. As we understand it, Apple essentially prefers paying periodic fines, rather than comply with a decision of the Dutch Competition Authority on the terms and conditions for third parties to access its appstore. And that will also be one of the obligations included in the DMA.

Apple's willingness to pay fines has not gone unnoticed and this could affect how future regulations are drafted. There are a number of antitrust investigations underway and bills under consideration that could significantly impact the App Store. In the United States, the Senate Judiciary Committee recently passed the bi-partisan 'Open Markets Act' that would require Apple to allow sideloading. It will now seek full approval from the Senate.

Vestager's full speech can be found at the link below...

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