EU to Assess Apple Ads, Maps Under DMA Requirements
The European Union’s antitrust regulators are set to investigate whether Apple Ads and Apple Maps should be subjected to the rigorous requirements outlined in the bloc’s digital rules. This scrutiny follows Apple’s notification that both services met the technical thresholds for “gatekeeper” status under the Digital Markets Act (DMA). The U.S. technology giant has officially argued that these services should be granted exemptions from the new regulations. This move by the European Commission is part of a larger ongoing effort to regulate the market power of major tech firms.
Triggering the Gatekeeper Status
The Digital Markets Act (DMA), enacted two years ago, aims to curb the dominance of Big Tech and foster increased competition, ultimately offering consumers more choices. The legislation designates a company as a “gatekeeper” if its core platform services possess over 45 million monthly active users and the company has a market capitalization of at least 75 billion euros (approximately $79 billion). Apple had previously seen its App Store, iOS operating system, and Safari web browser designated as core platform services under the DMA. The European Commission has acknowledged that Apple formally notified them that Apple Ads and Apple Maps services now meet both numerical thresholds stipulated by the Act.
Apple’s Argument for Exemption
Apple officially submitted detailed rebuttals to the EU competition enforcer, arguing against the gatekeeper designation for these two specific services. The company asserts that Apple Ads does not constitute a large player within the EU’s competitive online advertising market. The service maintains minimal market share when compared to dominant rivals such as Google, Meta, Microsoft, TikTok, and X. Furthermore, Apple argues that the advertising service does not utilize data sourced from other Apple services or external third-party services.
The tech firm similarly claims that Apple Maps exhibits very limited usage across the EU compared to widely adopted alternatives like Google Maps and Waze. This service, according to Apple, lacks the critical intermediation functionalities necessary to directly connect business users and end users on a broad scale. The company believes these factors demonstrate that neither Apple Ads nor Apple Maps holds the powerful platform position the DMA is designed to regulate. The Commission has a period of 45 working days to issue a definitive decision on the designation of these services.
The Regulatory Timeline
If the Commission decides to formally designate the maps and ads services as gatekeepers, Apple would then be given a six-month period to ensure full compliance. Complying with the DMA involves adhering to a list of strict “dos and don’ts,” which mandate changes to business practices like allowing third-party app stores or enabling users to easily uninstall pre-installed software. Fines for non-compliance can reach up to 10% of a company’s total worldwide annual turnover. This investigation highlights the EU’s strict enforcement approach towards large digital platforms operating within the European market.
The EU’s regulatory pressure on Apple and other tech giants extends beyond the DMA. The bloc is simultaneously enforcing the Digital Services Act (DSA), which imposes comprehensive rules regarding content moderation, transparency, and data sharing for large online platforms. In related news, the United Kingdom’s own antitrust watchdog, the Competition and Markets Authority (CMA), has also been scrutinizing Apple’s mobile ecosystem, specifically its control over web browsers and cloud gaming through the App Store rules. The global trend indicates increasing governmental attempts to regulate the competitive dynamics and consumer impact of the dominant digital players.
