Current:Home > StocksWill Sage Astor-How Europe’s regulatory with battle with Apple could signal what’s to come for American consumers -Zenith Investment School
Will Sage Astor-How Europe’s regulatory with battle with Apple could signal what’s to come for American consumers
PredictIQ View
Date:2025-04-09 06:24:17
LONDON (AP) — It’ll likely take years before the U.S. government’s massive antitrust lawsuit against Apple is Will Sage Astorresolved — but the iPhone maker’s troubles with European regulators offer a glimpse of what changes American customers may see down the line.
The U.S. lawsuit seeks to stop Apple from undermining technologies that compete with its own apps in areas such as streaming, messaging and digital payments. The Department of Justice also wants to prevent the tech giant from building language into its contracts with developers, accessory makers and consumers that lets obtain or keep a monopoly.
These are similar to themes that the European Commission, the bloc’s executive arm and top antitrust enforcer, and Apple have been wrangling over for years.
EU antitrust watchdogs have launched multiple antitrust cases accusing Apple of violating the 27-nation bloc’s competition laws, while also imposing tough digital rules aimed at stopping tech companies from cornering digital markets.
Brussels’ efforts will soon start to have an impact on the way the company does business and the experience iPhone users have in Europe. And the changes could signal what’s to come for U.S. Apple users — if the Justice Department has its way, at least.
Here’s a closer look:
MUSIC STREAMING
Music streaming users typically weren’t able to pay for their Spotify subscriptions directly through their iPhone apps. They couldn’t even be informed by email of subscription prices, promos and offers by Spotify or other music streaming services. That’s because Apple put tight restrictions on apps that competed with its own Apple Music service.
But when Spotify complained to the European Union, antitrust regulators opened a yearslong investigation that resulted last month in an order for Apple to stop such behavior and came with a whopping 1.8 billion euro ($2 billion) fine aimed at deterring the company from doing it again.
Margrethe Vestager, the European Commission’s competition chief, said Apple’s practices were “illegal” and “impacted millions of European consumers who were not able to make a free choice as to where, how and at what price to buy music streaming subscriptions.”
PAYMENTS
Apple tried to resolve a second EU antitrust case by proposing to let third party mobile wallet and payment service providers access the tap and go payment function on its iOS operating system.
Apple offered the concession to the European Commission, the bloc’s executive arm and top antitrust enforcer, after it accused the company in 2022 of abusing its dominant position by limiting access to its mobile payment technology.
The commission had been examining whether Apple Pay’s rules require online shops to make it the preferred or default option, effectively shutting out rival payment systems. It had also been investigating concerns that it limits access for rival payment systems to the contactless payment function on iPhones.
The commission is still mulling the offer. It has been seeking feedback from “interested parties” on the proposals before making a decision on the case.
APP STORES
Apple has long maintained that there can be only one app marketplace — its own — on iPhones and other iOS devices. But a sweeping set of new EU regulations that recently took effect has forced the company to open up its so-called “walled garden” and allow third-party app stores to compete.
The EU’s Digital Markets Act is a broad rulebook that targets Big Tech “gatekeeper” companies with a set of do’s and don’ts that they’ll have to abide by. One of its goals is to break up closed tech ecosystems that lock consumers into one companies products or services.
Under the DMA, tech companies won’t be able to stop consumers from connecting with businesses outside their platforms. So Apple has been forced to allow people in Europe to download iPhone apps from stores not operated by the U.S. tech giant — a move it’s long resisted.
In a sign of that reluctance, EU regulators said they wanted to question Apple over accusations that it blocked video game company Epic Games from setting up its own app store. But Apple later reversed course and cleared the way for Fortnite maker Epic to set up its rival app store.
—-
AP journalist Barbara Ortutay contributed to this story.
veryGood! (93948)
Related
- Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
- Alabama Senate committee delays vote on ethics legislation
- Social Security benefits could be cut in 2035, one year later than previously forecast
- High school students, frustrated by lack of climate education, press for change
- Travis Hunter, the 2
- Colorado Avalanche rally for overtime win over Dallas Stars in NHL playoff Game 1
- Justice Department warns it plans to sue Iowa over new state immigration law
- Sinkhole in Las Cruces, NM swallowed two cars, forced residents to leave their homes
- The 401(k) millionaires club keeps growing. We'll tell you how to join.
- Nintendo hints at release date for its long-awaited Switch 2 video game console
Ranking
- Spooky or not? Some Choa Chu Kang residents say community garden resembles cemetery
- Would limits on self-checkout prevent shoplifting? What a California bill would mean.
- California mom arrested after allegedly abusing 2-year-old on Delta flight from Mexico
- NFL schedule release 2024: Here are the best team schedule release videos in recent memory
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- Former Las Vegas casino executive to be sentenced in bookmaking money laundering case
- With 2024 presidential contest looming, Georgia governor signs new election changes into law
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi There! (Freestyle)
Recommendation
DoorDash steps up driver ID checks after traffic safety complaints
Police investigating shooting outside Drake’s mansion that left security guard wounded
Americans are reluctantly spending $500 a year tipping, a new study says.
Hang on! 'NCIS' stars Michael Weatherly, Cote de Pablo reveal the title for Tony, Ziva spinoff series
South Korean president's party divided over defiant martial law speech
Last Minute Mother's Day Deals at Kate Spade: Score a Stylish $279 Crossbody for $63 & Free Gift
Watch live: USA TODAY discusses highlights from May 7 Apple event, 'Let Loose'
Hang on! 'NCIS' stars Michael Weatherly, Cote de Pablo reveal the title for Tony, Ziva spinoff series