The European Union's Competition Commissioner, Margrethe Vestager, has spotlighted several major concerns regarding Apple's adherence to the Digital Markets Act (DMA). In an interview with CNBC, Vestager revealed that the European Commission is probing into Apple's practices, which could lead to stringent regulatory actions.
Vestager highlighted the necessity of competition and stability within the European Union in the discussion. She expressed optimism that pro-European centrist parties would maintain their influence, keeping competition policy at the forefront. However, she noted that impending changes might require updates to these rules to reflect market developments.
Strategic Investments Over Competing Subsidies
Vestager discussed the competitive challenge posed by subsidies from China and the United States. She proposed that Europe should focus on strategic investments rather than attempting to outspend these nations. She underscored initiatives in hydrogen batteries and digital education as examples of the EU's strategic spendings, which amount to €100 billion, aimed at enhancing competitiveness.
The Commissioner touched on various active investigations, including a look into Microsoft's merger protocols and investments in OpenAI, highlighting the importance of competition in the AI space. She also discussed ongoing investigations into Apple and Spotify regarding the Digital Markets Act (DMA), emphasizing the priority of enforcement and the potential impact on business models. Vestager suggested the need for maintaining a level playing field, investing strategically, and ensuring competition remains effective for the next competition policy leader.
Vestager emphasized the importance of a diverse and competitive environment in artificial intelligence, suggesting that the Digital Markets Act could catalyze major shifts in business strategies, possibly leading to company breakups.
Allegations Against Apple
The recently announced EU´s inquiry concerning Apple investigates whether it is preventing businesses from informing users about cheaper alternatives or subscriptions outside the App Store. Commenced by the European Commission in March, this investigation seeks to ensure that Apple adheres to newly implemented rules designed to limit Big Tech's influence. If the tech giant is found guilty of breaching the DMA, it could incur fines up to 10% of its global annual revenue.
Vestager's Decade of Influence
Throughout her tenure, Vestager has focused on limiting the power of major tech firms to level the playing field in the EU. She has led numerous high-profile investigations, such as those against Google's parent company Alphabet, resulting in substantial fines. With several significant probes still underway, including an antitrust investigation into Microsoft's bundling of Teams with Office, Vestager's legacy is marked by rigorous regulatory measures.
As she prepares to step down, Vestager reflected on her future, hinting at a desire for rest after a strenuous decade. “I may sleep for a month because this has been 10 years hypercharged,” she commented, signaling her readiness for a new phase beyond her extensive regulatory work.
