Apple Denies EU's 'Gatekeeper' Label In Latest Digital Markets Act Development

In a landmark decision, the European Union (EU) has labeled Apple Inc. AAPL as one of six ‘gatekeepers’ in the digital market, sparking a swift response from the tech giant.

The EU’s designation comes under its new Digital Markets Act (DMA). The European Commission named six gatekeepers, including Alphabet Inc. GOOG, Amazon.com Inc. AMZN, Apple Inc. AAPL, Meta Platforms Inc. FB, Microsoft Corporation MSFT, and China’s ByteDance Ltd., all required to ensure full compliance with DMA obligations within six months.

Apple has been specifically accused of gatekeeping for its Safari browser, iOS operating system, and the App Store. The EU also plans to investigate Apple’s iMessage service, despite the company’s contention that it falls short of the new law’s 45 million monthly active user threshold.

See Also: EU Challenges Big Tech: Google Search, WhatsApp, TikTok, And 19 Others Face DMA Scrutiny

As per iMore’s report, Apple expressed deep concern over the privacy and data security risks the DMA poses. The company stated it will focus on mitigating these impacts while delivering top-quality products and services to its European customers.

If Apple fails to comply, it could face a fine of up to 10% of its global turnover, which could rise to 20% for repeat offenses. The DMA’s punitive measures also include “behavioral and structural remedies,” which might force Apple to sell parts of its business for “systematic infringements”.

The DMA’s ruling may lead to significant changes in Apple’s business model, potentially allowing third-party app stores and enabling users to uninstall default apps like Safari and Messages. Apple, however, has not indicated any intention to apply these changes beyond the EU.

These developments and the company’s response to the DMA’s obligations will likely impact Apple’s stock price.

Image Via shutterstock

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