Margrethe Vestager, the European Union’s top antitrust official, issued cautions directed at tech giants Apple and Meta Platforms concerning their recently introduced fee structures and practices, which she believes could potentially undermine competition and consumer choice.
Vestager’s warnings come at a time when both companies are facing increased scrutiny regarding their compliance with the Digital Markets Act (DMA), which aims to promote fair competition within the digital sphere.
Apple’s recent announcement of a revised fee structure, featuring a core technology fee of 50 euro cents per user account annually, has attracted Vestager’s attention. While Apple has taken steps to adhere to EU tech regulations by opening its closed ecosystem to competitors, concerns have been raised, notably by prominent app developers like Epic Games, regarding the competitive implications of these fees.
Vestager stressed the importance of investigating whether Apple’s fee arrangement aligns with the goals of the DMA, specifically in terms of potentially limiting users’ access to a wider range of choices.
In an interview with Reuters, Vestager voiced reservations regarding Meta’s new subscription fees for its platforms, Facebook and Instagram. Although Meta has proposed a reduction in its monthly subscription fee, concerns persist regarding its impact on competition and consumer welfare.
Vestager emphasized the necessity of engaging in discussions with Meta to ensure compliance with the DMA and to explore alternative methods of monetization that do not hinder competition.
Austrian privacy advocate Max Schrems underscored broader concerns beyond just the fee structures, highlighting the importance of contextual advertising as an alternative revenue model.
Furthermore, Vestager cautioned against companies engaging in practices that could discourage users from switching platforms, particularly through disparaging remarks aimed at competitors.
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