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EU Defends Digital Markets Act, Insists It’s Not Targeting U.S. Tech Giants

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European Union officials have rejected accusations that their new Digital Markets Act (DMA) is aimed at U.S. tech giants. In a joint letter to U.S. congressmen Jim Jordan and Scott Fitzgerald, EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunnen emphasized that the DMA is designed to keep digital markets open and applies to all companies meeting the criteria for being considered “gatekeepers,” regardless of their headquarters.

Ribera and Virkkunnen responded to concerns raised by U.S. lawmakers about the potential impact of the DMA on U.S. firms. The letter, dated March 6, clarified that the law does not specifically target U.S. companies, but instead applies to any firm that fits the established gatekeeper definition in the EU.

The EU officials also defended the DMA against criticism that it could stifle innovation. They argued that the act aims to prevent unfair practices by dominant players, thus fostering a more open and competitive digital market that will allow new players to emerge and innovate. Ribera and Virkkunnen highlighted that similar concerns over monopolistic behavior had prompted antitrust investigations and legal actions against companies like Google, Amazon, Apple, and Meta in the U.S. under the Trump administration and beyond.

In response to claims that EU fines on American tech firms resemble a European tax, the EU officials emphasized that the primary goal of enforcement is to ensure compliance with the law, not to impose punitive measures. They pointed out that sanctions, which are a standard feature of both EU and U.S. regulations, are essential for ensuring effective enforcement.

Apple Raises Concerns Over First Porn App on iPhones Under EU Rules

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Apple has criticized the availability of a pornography app on iPhones in the European Union, arguing that the bloc’s digital regulations are eroding consumer trust. The app, called Hot Tub, is being distributed via AltStore, one of the alternative app stores enabled under the EU’s Digital Markets Act (DMA).

For years, Apple maintained strict control over the App Store, with former CEO Steve Jobs emphasizing in 2010 that keeping pornography off iPhones was a “moral responsibility.” However, under the DMA, Apple must now allow third-party app stores, which led to AltStore’s distribution of Hot Tub.

Apple expressed concerns over the potential risks posed by such content, particularly for children, stating, “This app and others like it will undermine consumer trust and confidence in our ecosystem.” Despite Apple’s reservations, Hot Tub was able to pass the company’s required “notarization” process, which primarily checks for cybersecurity threats rather than content approval.

AltStore, backed by Epic Games—the company behind the antitrust case against Apple—highlighted this notarization by claiming Hot Tub was the “world’s first Apple-approved porn app.” Apple quickly refuted this, asserting, “We certainly do not approve of this app and would never offer it in our App Store. The truth is that we are required by the European Commission to allow it to be distributed.”

Epic Games CEO Tim Sweeney defended the DMA, arguing that Apple had previously misused its gatekeeping power to stifle competition. However, he clarified that Epic’s own EU app store does not carry Hot Tub and has never hosted pornographic content.

 

Apple’s New Developer Fees Face EU Antitrust Scrutiny

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Apple’s newly introduced fees for app developers are drawing heightened scrutiny from European Union (EU) antitrust regulators, according to a Bloomberg report on Monday. The investigation centers on Apple’s new “core technology fee,” which charges developers €0.50 ($0.51) per app installation, raising concerns about potential cost inflation for software makers.

The EU regulators have reportedly distributed a fresh round of questionnaires as part of their inquiry, examining whether the new fees align with the bloc’s Digital Markets Act (DMA). The DMA, aimed at curbing the power of major tech platforms, restricts certain practices and imposes fines of up to 10% of a company’s annual revenue for violations.

Key Concerns Under Investigation

Officials are investigating whether Apple’s fee structure might result in higher costs for consumers or force developers to alter their business models. They are also questioning Apple’s claim that the new system will reduce costs for developers.

The timing of this scrutiny coincides with calls from Big Tech leaders in the U.S. for President-elect Donald Trump to push back against the EU’s regulatory actions targeting American technology firms.

Apple’s Regulatory Challenges

Apple has been under increasing pressure from regulators in both the U.S. and Europe over the fees it imposes on third-party developers using its App Store. While Apple maintains that 85% of developers on its platform pay no commission, the newly introduced fees have raised fresh concerns about compliance with the DMA.

Shares of the Cupertino-based tech giant fell by 1.8% in early trading following the news. Neither Apple nor the European Commission provided immediate comments on the matter.