European Union’s Antitrust Chief Warns Apple and Meta Platforms
Margrethe Vestager, the European Union’s antitrust chief, issued warnings to tech giants Apple and Meta Platforms regarding their new fee structures and practices that may undermine competition and consumer choice.
Apple’s Fee Structure Scrutiny
- Vestager raised concerns about Apple’s new fee structure, including a core technology fee of 50 euro cents per user account per year.
- Despite efforts to comply with EU tech legislation, concerns have been raised by major app developers like Epic Games.
- Vestager emphasized the need to investigate if Apple’s fees hinder the objectives of the Digital Markets Act (DMA).
Meta Platforms Subscription Fees
In an interview with Reuters, Vestager expressed reservations about Meta’s new subscription fees for Facebook and Instagram.
- While Meta proposed reducing its monthly subscription fee, concerns persist about competition and consumer welfare implications.
- Vestager stressed the importance of engaging in dialogue with Meta to ensure DMA compliance.
Broader Concerns and Antitrust Warnings
- Privacy activist Max Schrems highlighted concerns beyond fee levels, emphasizing contextual advertising as an alternative revenue model.
- Vestager cautioned against companies disparaging rivals in ways that discourage platform switching.
- She warned that such behavior could trigger antitrust investigations, emphasizing the need for fair competition and market openness.
Security Risks and Developer Feedback
- Vestager emphasized that the DMA focuses on promoting competition rather than addressing security concerns.
- Feedback from developers will be crucial in determining potential DMA violations against the scrutinized companies.
