Regulation
EU cracks down on Apple for violating tech rules, what impact does this have on cryptocurrencies?
THE European UnionThe (EU) regulatory body, the European Commission, announced on Monday that Apple is violating the new Digital Markets Act (DMA). This landmark law aims to curb the influence of major technology companies. The Commission’s preliminary findings indicate that Apple’s App Store policies prevent app developers from steering customers to alternative purchasing options.
The DMA, enacted to prevent Big Tech companies from abusing their dominant market positions, includes provisions against “anti-steering” practices. Specifically, these rules prohibit tech giants from blocking companies from informing users about cheaper alternatives or subscriptions outside of their app stores.
The European Union’s crackdown on Apple
Furthermore, the Commission criticized Apple for imposing restrictions that prevent developers from freely promoting offers and signing contracts through their chosen distribution channels. The European Commission said: “Apple’s App Store rules prevent app developers from freely directing consumers to alternative channels for offers and content.”
Additionally, Apple’s current system allows developers to provide links to external websites for purchasing content. However, these links are subject to restrictions that hinder direct communication and promotion.
Further examination revealed that Apple’s fees for initial customer acquisition through the App Store exceed what the Commission considers “strictly necessary.” While the Commission did not specify what constitutes a necessary fee, Apple faces fines of up to 10% of its total global annual revenue if found guilty of violating the DMA.
This is not the first time Apple has faced regulatory challenges in the EU. Earlier this year, Apple was fined €1.8 billion ($1.93 billion) for anti-competitive practices in the music streaming market. Furthermore, despite recent adjustments to App Store policies, such as allowing downloads from third-party websites and stores, the Commission remains wary of Apple’s new practices.
The Commission is currently examining Apple’s basic technology fee of €0.50 ($0.54) per app installed outside the App Store. Additionally, this investigation aims to determine whether this fee is compliant with DMA regulations.
Furthermore, the Commission is evaluating whether Apple’s procedures for downloading apps or alternative app stores satisfy the blocking rules. Eligibility criteria for offering alternative app stores or direct distribution of apps on iPhone are also under review.
Read also: Mira Murati, CTO of OpenAI, says realizing the potential of AI is not guaranteed
State of cryptocurrency regulation in the EU
At the same time, the European Union is tightening regulations on the cryptocurrency market. Italy is preparing to implement stringent measures to monitor risks related to cryptocurrencies. According to a draft decree reviewed by Reuters, the Italian government is expected to approve measures that include heavy fines ranging from 5,000 euros ($5,400) to 5 million euros ($5.4 million).
The fine will be imposed for insider trading, unlawful disclosure of inside information or market manipulation. As the EU prepares to enforce the rules Not, countries are identifying their own local regulatory bodies, known as national competent authorities (NCAs), to oversee the cryptocurrency industry. Furthermore, Italy’s proactive stance illustrates the EU’s commitment to robust oversight in both the technology and financial sectors.
The intersection of these regulatory developments in technology and cryptocurrencies suggests a rigorous approach from the EU. Apple’s crackdown under the DMA highlights the bloc’s determination to limit the power of dominant companies and promote fair competition. Likewise, the stringent measures under MiCA signal a no-tolerance policy towards market manipulation and insider trading in the cryptocurrency sector.
For the cryptocurrency industry, these regulatory moves mean a future of increased scrutiny and stricter compliance requirements. Companies operating in both the technology and cryptocurrency markets may need to re-evaluate their strategies to align with the EU’s evolving digital regulatory landscape.
Read also: Cathie Wood headlines trend this week