Following Apple’s announcement not to launch its artificial intelligence ecosystem, Apple Intelligence, in the European Union (EU), the European Commission expressed concern. Margrethe Vestager, executive vice president of said organization, pointed out that This was anti-competitive behavior on the part of the company.
“They say that they will not do it because of the obligation they have in Europe and the obligation they have in Europe is to be open to competition. “This is the summary version of the Digital Markets Act (DMA),” Vestager said in Forum Europa. “I find it very interesting that they say they will now deploy AI where they are not required to allow competition.“, he added.
“I think it is the most open and surprising statement that they know 100% that this is another way of disabling competition,” said the Danish politician.
Noting that Apple plans to deploy its AI in regions where DMA obligations do not apply, Vestager expressed concern about what he sees as a strategy to prevent fair competition.
The DMA (Digital Markets Act) requires several points from technology companies that are designated as ‘gatekeepers’ in the digital market. These are some of the main requirements:
– InteroperabilityCompanies must ensure that their services are interoperable with other services and systems, allowing users to easily switch between different platforms and applications.
– Prohibition of anti-competitive practices: It is prohibited to carry out practices that distort competition, such as self-preferring, unfair discrimination or the imposition of unfair contractual conditions on users.
– Data access: They must provide access to key data to competitors and users, under certain conditions, to encourage innovation and competition in the market.
– TransparencyCompanies must be transparent in their business practices, including publishing reports on their performance, terms and conditions, and data handling policies.
– Prohibition of restrictive clauses: The inclusion of clauses in contracts that limit users’ ability to use third-party or alternative services is not permitted.
– Notification and consultation: Companies must notify the European Commission of any significant acquisitions or changes to their services that may affect competition in the digital market.
Being anti-competitive implies any action that has the effect of restricting genuine competition. and fair in the market, benefiting the company to the detriment of consumers and other market participants.
Apple is considered a “gatekeeper” under the Digital Markets Act (DMA) due to its dominant position in the digital marketplace. This designation is based on several key factors including:
– Strong economic position: The firm led by Tim Cook has a strong economic position, with a turnover of more than 7,500 million euros in annual turnover, a market capitalization of more than 75,000 million euros and, at least, 45 million monthly active users in The EU.
– Control over digital platforms: Apple manages closed ecosystems like iOS and iPad OSwhere it controls the distribution of applications through the App Store and establishes the rules and conditions for developers and users.
– User base and broad marketWith millions of active users in the European Union and a wide range of services integrated into its devices, Apple has considerable influence over how digital services are developed and operated in its ecosystem.
