Apple will avoid a potential fine by the European Union for its default browser selection on iPhones. It follows Apple rolled out changes to comply with the EU’s Digital Markets Act (DMA), an historic bill that aims to check giant tech monsters. The European Commission, which opened an investigation into Apple’s behavior in March last year, will bring the case to an early conclusion early next week.
The probe examined claims that Apple’s design of the web browser screen on iPhones made it potentially difficult for users to switch to alternative browsers or search engines. Apple has acted by adjusting its browser settings, making its conduct comply with the DMA’s requirements. The DMA is supposed to facilitate easier switching among various online services, such as social media, web browsers, and app stores, and to create opportunities for smaller competitors.
Firms found to be in violation of the DMA can face hefty fines, as much as 10% of their global annual turnover. Apple’s compliance efforts have likely minimized the possibility of such a fine. The decision to close down the probe comes amid the EU’s imposition of fines on Apple and Meta Platforms for other violations of the DMA and imposing the law on both firms.
In still another Apple case, the EU is probing if the company needs to be restricted from preventing app developers from notifying users of deals made outside of its App Store for free. This issue is used to point to persistent wrangles among regulators and tech giants over app store regulations.
The Meta case is different, however, and relates to its European ad-free subscription service, which was launched in November 2023. Regulators have attacked the service on the basis that Meta is required to provide free alternative options. The EU view is part of a broader effort to ensure that large tech companies do not stifle competition or limit user choice.
The EU decision on Apple’s browser options comes amid rising tensions with U.S. President Donald Trump, who has threatened to impose tariffs on countries that penalize American companies. Trump has been outspoken in complaining about what he perceives as unfair treatment of U.S. tech firms by European regulators. The EU remains eager to impose its digital regulations to promote fair competition and consumer choice even amid these tensions.
All in all, Apple’s compliance with the DMA likely spared the company a hefty fine, demonstrating the company to be adaptable in dealing with shifting regulatory landscapes in core markets. The move also indicates the EU’s determination to apply its digital policies, even as it navigates delicate geopolitical trade-offs with its core trading partners.
