Apple in digital market

European Union Industry Commissioner Thierry Breton on Tuesday urged Apple CEO Tim Cook to open up Apple’s digital market, encompassing both hardware and software, to competitors. Following a meeting with Cook in Brussels, Breton emphasized that consumers using an Apple iPhone should have the opportunity to access competitive services such as electronic wallets, browsers, and app stores. Apple declined to comment on the matter.

The call for greater market access comes in the wake of the recent adoption of the Digital Markets Act (DMA), which outlines a set of guidelines and restrictions for tech companies, including Apple, to promote competition. Breton also challenged Apple’s argument that its tightly integrated ecosystem is necessary for security and privacy reasons, asserting that the European Union must foster innovation while maintaining a balance between innovation and security.

Breton’s statements coincide with a surge in complaints from competitors regarding Apple’s closed ecosystem, along with perceptions that the tech giant leverages its market dominance to favor certain apps on its iPhones and iPads. Additionally, the European Commission has accused Apple of stifling competition in the accreditation of payment methods within its App Store.

Despite some legislative efforts aimed at promoting competitive practices and opening up Apple’s digital market, Breton’s proposals are expected to face resistance, given Apple’s historical reluctance to allow competitors into its ecosystem. Ultimately, Breton’s call appears to challenge Apple not only to comply with the DMA but also to dismantle some of the barriers within its closed ecosystem.

These calls come at a time when multiple antitrust investigations are ongoing, including those initiated by the European Commission in 2020. The response from Apple to this push for a more open market for its digital products remains uncertain, leaving industry observers and consumers eager to see how the tech giant will navigate this evolving landscape.

Source: Reuters

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