Acting under the authority of the 2022 Digital Markets Act (DMA), the European Union (EU) launched a lawsuit against Apple over the internal workings of Apple’s App Store, which it claims does not allow app developers enough freedom to steer customers toward offers outside of the App Store. Announced in the name of “competition”, this lawsuit — with a potential penalty of up to 10 percent of Apple’s global revenue — directly undermines basic free market principles. In an effort to “combat Big Tech”, amid populist demand to tackle alleged monopolies and make social media safer, the DMA lawsuit directly infringes on Apple’s right to manage its own intellectual property (IP) as it sees fit and marks an unwarranted interference in private business operations.
Designed to offer a host of developers easy access to millions of electronic devices, the App Store integrates a range of products and services into iPhones, iPads and other Apple devices. Ensuring high-quality products, device security, and user privacy, Apple offers built-in applications for tracking health statistics, creating movies or music, listening to podcasts and more.
Competitors' applications must meet specific technical and content guidelines to appear on the App Store. Unlike Android and other cellphone companies, the EU alleges Apple fails to give programmers free-range to offer different purchasing options. While millions appreciate the carefully curated App Store, coupled with Apple’s easy-to-learn, bug-safe user experience, EU regulators see things quite differently. The seamless experience of iPhones and other devices has not inhibited droves of startups and side-projects to achieve seismic success. From social media companies to ride-calling services, the relatively affordable and straightforward requirements to launch an Apple-available app show that the EU’s competition concerns are a mirage for deeper bureaucratic goals.
When developers choose to use Apple's platform, that business decision comes with an agreement to the App Store’s terms and conditions. The EU’s DMA law insists Apple ought to directly integrate pricing information and access within the store, as opposed to the currently employed model of “linking-out” users. However, the system exists to ensure user privacy on the carefully designed, well-encrypted digital ecosystem. Although valued at over $3.2 trillion today, Apple’s commission structure gives a fair platform, quality services, and appropriate compensation to app developers.
The EU’s infringement on the tech industry’s economic freedom comes as no surprise. While Apple marks the first company charged with violating DMA regulations, the EU remains stubbornly devoted to rooting out American tech companies from the motherland. The real victims here are European consumers who will miss out on innovative technologies moving forward.
As a result of Brussel’s regulatory rampage, Apple has already announced it will not release various new features in Europe, including Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing, due to the DMA’s impact on security infrastructure. Likewise, the EU charged Apple competitor Microsoft with antitrust violation over bundling Teams, the video conferencing software, with its Office suite.
While the European body strives to stimulate competition by making digital products more interchangeable, as seen by pressuring Apple to simplify charger cables, the DMA and subsequent lawsuits risk unintended consequences. Rather than diversifying the market, the EU may entrench Apple and other established companies through regulatory capture. Agencies like the EU run the gambit of pursuing their personal — political — interests over those of the public. Ultimately, their regressive antitrust policies could stifle innovation, reduce product quality, and harm consumer privacy in ways regulators haven't anticipated.
Ultimately, the DMA’s lawsuit misrepresents Apple’s App Store as “lacking competition”, when in reality it allows direct competitors like Google and Meta to offer products that integrate with iOS. The DMA won’t improve iPhone users' experience. All it will do is discourage tech companies from investing in new services and systemic improvements.
European politicians need to leave questions like this to the will of the market. If Apple's practices are truly harmful and inhibit the competition of valuable alternative products, market forces will naturally lead to a shift in consumer behavior. If people really want the ability to download any app regardless of whether or not it meets the App Store’s requirements, they can buy an Android instead. By and large, Europeans seem content with the products Apple offers and the host of products currently available in the App Store. The company that introduced billions of people to the internet, via the Mac, and cellular devices, via the iPod and iPhone, continues to innovate for the progress of humankind. Don’t fix what isn’t broken.
