Apple’s App Store and its compliance with the European Union regulations took a new turn this week, with CEO Tim Cook meeting with EU antitrust chief Margrethe Vestager. While details remain scarce, the encounter underscores the ongoing tensions between the tech giant and the bloc, with the future of the App Store in Europe hanging in the balance.
Vestager’s visit to the US saw her engage in high-level talks with leaders of several Big Tech firms, including Apple. However, it was her meeting with Cook at Apple Park on January 11 that garnered the most attention. While neither party has divulged specifics, Vestager’s subsequent tweet hinted at the key topics discussed: the App Store and Apple Music.
One of the longstanding issues between Apple and the EU lies in the App Store’s closed ecosystem. The EU considers it a “gatekeeper” platform, subject to stringent regulations under the Digital Markets Act (DMA). This act dictates that users must have the choice to install apps from alternative sources, bypassing the App Store altogether. Apple, however, contends that its five separate App Stores, tailored to each device, shouldn’t fall under the DMA’s umbrella. This argument was likely reiterated by Cook during the meeting.
Apple Music also came under scrutiny, as Apple could face a fine of as much as 10% of its annual sales against the service for allegedly stifling competition through preferential treatment of Apple’s own music offerings. It’s unclear whether the meeting yielded any progress on this front, given the existing ruling.
Beyond the discussions, the timing of this meeting is significant. The DMA deadline for Apple to comply with its provisions, including allowing sideloading of apps, looms large on March 6. This potentially forces Apple to make substantial changes to its App Store model, a prospect the company has consistently resisted.
Furthermore, the Cook-Vestager encounter coincides with other contentious issues between Apple and the EU. A hefty tax dispute and the potential opening of the iPhone’s Near Field Communication (NFC) technology to rivals add fuel to the already fiery situation.
The outcome of these ongoing clashes remains uncertain. Apple faces the pressure of adapting its business model to comply with EU regulations, while the EU seeks to level the playing field and promote fair competition in the digital market.
