Yazılar

EU Cracks Down on Google and Apple Over Digital Market Rules

/in /tarafından

The European Commission intensified its regulatory action against Big Tech on Wednesday, charging Google with two violations of the Digital Markets Act (DMA) and ordering Apple to open its ecosystem to competitors. The crackdown comes amid growing tensions between the EU and the U.S., with former President Donald Trump previously threatening tariffs in response to European fines on American companies.

Google’s alleged violations include restricting app developers from directing users to external offers outside the Google Play Store and prioritizing its own services—such as Google Flights, Google Shopping, and Google Hotels—over competitors in search results. The EU claims these practices hinder fair competition and consumer choice. Google defended its business model, warning that stricter regulations could reduce the quality of search results and limit investment in Android and Play services.

Apple was issued two compliance orders, requiring it to allow rival device makers seamless access to its technology and to establish clear timelines for responding to developers’ interoperability requests. Apple pushed back, arguing that these measures would slow innovation and unfairly benefit competitors who do not follow the same regulations.

Both companies face serious consequences if they fail to comply. Google, which has already been fined over €8 billion by the EU for previous antitrust violations, could face penalties of up to 10% of its global revenue. Apple may also undergo further investigations and financial sanctions if it does not meet the new regulatory demands.

Despite the regulatory pressure, shares of Alphabet and Apple rose by 1% and 1.6%, respectively, following the announcement.

Zalando Challenges EU Tech Regulations, Argues It Shouldn’t Be Classified as a Very Large Online Platform

/in /tarafından

Zalando, Europe’s largest online fashion retailer, has criticized EU regulators for classifying it alongside major platforms like Amazon and AliExpress under the bloc’s Digital Services Act (DSA). The company argues that its business model is fundamentally different, and thus it should not be subject to the same stringent provisions that apply to the other two tech giants.

The DSA, which came into force in 2022, imposes more responsibilities on very large online platforms (VLOPs) to combat illegal and harmful content, with fines of up to 6% of their global annual revenue for non-compliance. Zalando’s lawyer, Robert Briske, told the General Court that the European Commission had failed to properly recognize the differences between Zalando and companies like Amazon, AliExpress, and booking.com. He emphasized that Zalando operates a hybrid business model, combining both direct retail and a marketplace for third-party sellers, which sets it apart from purely online shops or marketplaces.

Zalando contends that the Commission’s designation of its active users as 83 million is inaccurate. The company argues that only 30.8 million of those visitors qualify as active users in 2023, the year it was classified as a VLOP. Briske stated that this miscalculation was another key issue in the case.

In response, EU Commission lawyer Liane Wildpanner defended the classification, asserting that Zalando’s model is similar to that of Amazon and AliExpress, both of which also offer hybrid services. Wildpanner argued that Zalando was attempting to “have the best of both worlds” by challenging its VLOP designation.

Zalando has garnered support from Germany’s e-commerce association, BEVH, while the European Information Society Institute, the European Parliament, and the Council of the European Union have sided with the Commission. The General Court is expected to issue its ruling in the coming months. Amazon, too, has challenged the Commission’s VLOP designation and is awaiting a hearing date.

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

/in /tarafından

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.