EU’s Vestager Warns About Apple and Meta Fees, Criticizes Disparaging Rival Products

On March 19, in Brussels, EU antitrust chief Margrethe Vestager issued a warning to technology behemoths Apple and Meta Platforms regarding their recent introduction of new fees for their services.  

She emphasized her concern that these fees could potentially hinder users from reaping the full benefits of the Digital Markets Act, which aims to enhance consumer choice and foster competition in the digital marketplace.Vestager underscored the critical importance of ensuring that companies abide by the legislation to maintain a fair and open digital environment that benefits all users.

Apple’s announcement of a series of changes in January was a response to the landmark EU tech legislation, which mandates greater openness of its closed ecosystem to competitors. This move by Apple was seen as a step toward compliance with the regulations set forth by the Digital Markets Act.Apple’s new fee structure introduces a core technology fee of 50 euro cents per user account per year, applicable even to major app developers who do not utilize any of Apple’s payment services. This move has sparked criticism from rivals such as Fortnite creator Epic Games.

Vestager highlighted her concern regarding the new fees, stating, “There are things that we take a keen interest in, for instance, if the new Apple fee structure will de facto not make it in any way attractive to use the benefits of the DMA. That kind of thing is what we will be investigating,” during an interview with Reuters.Vestager voiced her concerns regarding Meta’s new fees. Earlier on Tuesday, the company announced a reduction in its monthly subscription fee for Facebook and Instagram from 9.99 euros to 5.99 euros. However, Austrian privacy activist Max Schrems noted that the issue goes beyond the level of the fee.

Vestager emphasized that there are various methods to monetize services, highlighting the distinction between targeted advertising based on data consumption and contextual advertising as alternative approaches.Vestager emphasized the importance of ongoing dialogue with Meta and indicated that they would evaluate what steps Meta needs to take to ensure compliance with the Digital Markets Act (DMA).

Furthermore, Vestager cautioned companies against dissuading users from switching to competitors through negative tactics, stating that such behavior could prompt an investigation. Apple has raised concerns about potential security risks associated with some of its changes.Vestager emphasized that attributing safety concerns to the Digital Markets Act (DMA) is unwise, as the DMA’s purpose is to facilitate market access for other service providers.The DMA does not encompass the responsibility for ensuring the safety of operating systems; rather, it focuses on fostering competition and ensuring fair access to digital markets.

However, if there are suspicions that safety concerns are being used to criticize competitors unfairly, regulatory action may be taken to investigate such behavior.Vestager stressed the significance of gathering input from developers to gauge the necessity of launching investigations into companies under the jurisdiction of the Digital Markets Act (DMA). In response to inquiries about whether she had received any comments from third parties, she acknowledged that she had indeed received a considerable amount of feedback.