EU’s Vestager warns about Apple, Meta fees, disparaging rival products

Reuters, March 19, BRUSSELS – On Tuesday, EU antitrust chief Margrethe Vestager issued a warning to Apple and Meta Platforms on their new service fees, stating that they would prevent users from taking advantage of the advantages of the Digital Markets Act, which intends to provide them with more options.

In an attempt to comply with the historic EU tech legislation that mandates it to open up its closed eco-system to competitors, Apple announced a plethora of modifications in January.

Major app developers would have to pay a core technology cost of 50 euro cents per user account annually under the new price structure, even if they do not utilize any of Apple’s payment services. This has prompted criticism from competitors like Epic Games, the company behind Fortnite.

Vestager claimed that she has become interested in the increased costs. Vestager voiced her disapproval of Meta’s new charges.

We are particularly interested in some issues, such as if the new Apple pricing structure will in any way make using the DMA’s advantages unappealing. We will be looking into that kind of thing,” she said in an interview with Reuters.

The firm announced earlier on Tuesday that it has offered to nearly cut the monthly subscription charge for Instagram and Facebook, from 9.99 euros to 5.99 euros. However, Max Schrems, an Austrian privacy activist, asserted that the fee alone is not the problem.

“I believe there are numerous approaches to making money off of the services you offer. For starters, highly targeted advertising is based on the data that is being used. Contextualizing your advertising is another approach to display it, the speaker advised.

“So I think it’s important to continue the conversation with Meta and we will assess also finally, what is the next push in order for them to be compliant with the DMA.”

Vestager also cautioned businesses against using derogatory language to deter customers from moving to competitors, since this may lead to an inquiry.

Apple has stated that there may be security risks associated with some of its updates.

Saying that the services are unsafe to use is foolish in my opinion because it has nothing to do with the DMA. The DMA exists to make it easier for other service providers to connect with you, and it is up to your operating system’s supplier to determine how to ensure security,” the spokesperson stated.

“And of course, if we see or get the suspicion that this is in order to say that someone else are not doing their job of course, we might take initiatives to look into that.”

Vestager stated that developer input was crucial in determining whether or not to open investigations into any of the six businesses covered by the DMA.

When asked how many remarks she had received from outsiders, she replied, “Quite a lot, I would say.”

Leave a Comment