Apple is set to avoid a potential fine and an EU order over its browser options on iPhones. The tech giant made key changes to comply with the European Union’s new Digital Markets Act (DMA). According to sources familiar with the matter, the European Commission will close its investigation early next week.
The investigation began in March last year. The Commission raised concerns that Apple’s browser design made it difficult for users to switch to other browsers or search engines. However, Apple’s recent changes appear to have satisfied regulators.
Interestingly, the EU’s decision comes during rising tensions with the United States. U.S. President Donald Trump has threatened tariffs against countries that impose fines on American companies. Despite this, the European Commission has declined to comment on the ongoing situation.
The DMA aims to level the playing field in the tech industry. It lists clear dos and don’ts for major tech companies. The goal is to make it easier for users to switch between competing services like browsers, social media platforms, and app stores. This legislation also seeks to give smaller competitors a fair chance.
Under the DMA, companies could face fines of up to 10% of their global annual sales for violations. The Commission plans to announce the closure of Apple’s browser case next week. However, at the same time, it will issue fines to both Apple and Meta Platforms for separate DMA breaches.
In Apple’s second case, regulators are investigating whether the company restricts app developers from informing users about special offers available outside the App Store for free. This could be a serious violation if proven.
Meanwhile, Meta faces scrutiny over its no-ads subscription service launched in Europe in November 2023. Rivals and users alike have criticized the service. Regulators believe Meta should provide free alternatives alongside its paid plans.
In conclusion, while Apple seems to have escaped one fine, other challenges remain. Both Apple and Meta are under pressure to align with the DMA fully. The European Commission’s upcoming decisions will send a strong message to Big Tech companies worldwide.
Sources: Reuters
