The European Commission has instructed Apple to discontinue geo-blocking practices across its services, including the App Store, iTunes, Apple Arcade, and others.
The new directive, issued after an investigation by the EU´s Consumer Protection Cooperation Network, revealed that Apple’s policies may breach the EU´s Geo-blocking Regulation by preventing consumers from accessing digital services based on their registered location.
Limitations on Access and Payment Restrictions
The EU investigation concluded that users in the European Union face restrictions when trying to access versions of Apple’s digital platforms outside their home country.
For instance, a user with an account registered in Italy would encounter obstacles accessing the French version of the App Store while visiting France. Such limitations are seen as conflicting with the principles of the Geo-blocking Regulation, established in 2018 to eliminate barriers to cross-border access in the EU.
Additionally, Apple’s payment policies have been scrutinized, to which Apple responded in January with some additional choices. The EU Commission criticizes that consumers can only use payment methods tied to the country in which their Apple account was created, complicating the user experience for individuals who travel or relocate within the EU. These payment restrictions contravene EU regulations aimed at creating a seamless digital market.
Apple now faces a 30-day period to respond to the CPC Network’s findings and outline a plan to eliminate geo-blocking restrictions. Failure to provide a satisfactory resolution could result in further enforcement actions, potentially leading to fines.
The DMA stipulates that violations could incur financial penalties of up to 5% of global daily revenue—amounting to nearly $50 million per day for Apple.
Broader EU Regulatory Push and DMA Compliance Issues
This new action by the European Commission follows a year of regulatory pressure on Apple. In June 2024, the Commission charged Apple under the Digital Markets Act (DMA), accusing the tech giant of stifling competition. The charges centered on Apple’s “Core Technology Fee,” which applied to developers who directed users outside of Apple’s ecosystem, along with a 3% surcharge for using Apple’s payment system.
The DMA, which came into effect in March 2024, targets large digital companies, labeled as “platform gatekeepers,” to ensure they maintain fair business practices. Apple, along with other major tech firms like Google, Meta, and Amazon, falls under this category due to its extensive control over app distribution and payments.
In response to the DMA, Apple introduced changes, such as permitting third-party app stores and opening access to NFC technology with the iOS 17.4 update, which Epic responded to with an own offering. However, critics argue that these steps may not go far enough in meeting the EU’s requirements for market openness.
Compliance Moves by Other Tech Giants
While Apple faces scrutiny, other tech giants have taken varied approaches to comply with EU rules. Microsoft and Google, also classified as a gatekeeper, rolled out options for users in the European Economic Area to choose their default browser and search engine (Google).
Google also updated data-sharing preferences to allow users more control over personal data. Microsoft followed suit by offering greater flexibility for users to uninstall pre-installed applications. Meta took measures to integrate third-party messaging with WhatsApp, enhancing interoperability.
ByteDance, the parent company of TikTok, also implemented data portability features to align with the DMA, although it continues to challenge its gatekeeper designation, claiming it does not fit the criteria defined by the Act.
Contextualizing EU’s Regulatory Strategy
The new directive is part of the EU’s ongoing effort to hold major digital platforms accountable and enforce compliance with consumer rights. The EU´s Consumer Protection Cooperation (CPC) Network plays an integral role in coordinating efforts across EU states to address cross-border issues. The EU previously enforced similar actions in 2023 when it required Google to revise its Play Store terms, ensuring compliance with the Geo-blocking Regulation.
The current case against Apple reflects the EU’s intent to keep tech giants in check, preventing any one company from limiting competition or consumer access. The regulatory landscape in Europe is shifting, with stricter rules outlined in the DMA and other legislative measures ensuring that digital services remain fair and accessible for users.
