The first shot of the EU Digital Market Act: Is it promoting competition or excessive intervention?

Last September, the EU Digital Markets Act (DMA) officially came into effect, which aims to regulate the market behavior of large technology companies, prevent their abuse of market dominance, and create a fairer competitive environment for small competitors. However, the first shot of the bill was aimed at Apple, which sparked widespread controversy worldwide.

For many years, Apple has been known for its closed systems and strict control over the app store. According to DMA regulations, Apple is required to allow application developers to guide users to discounts outside of the App Store without charging additional fees. In addition, DMA also prohibits Apple from favoring its own branded products and services, bundling and selling its own software, and illegally exploiting and seizing personal information.

Based on comprehensive public information, the EU's accusations against Apple mainly focus on the following aspects:

App Store commission: Apple charges up to 30% commission for in app purchases, which is considered unfair treatment to developers and consumers. The European Union believes that Apple should reduce the commission ratio or allow developers to use other payment channels.

App Store Ecosystem Closed: Apple's App Store ecosystem is a relatively closed system, and developers need to comply with Apple's regulations and restrictions. The EU believes that this limits competition and innovation, and developers should be allowed to publish applications on other app stores.

Regarding the EU's accusations, Apple stated that the commission on its App Store is to maintain the quality and safety of the App Store, as well as to support developers. In addition, Apple also stated that the ecosystem of its app store is designed to protect user privacy and security, prevent malicious software and fraudulent behavior.

  However, the European Union has always believed that Apple's explanations cannot conceal the fact of its abuse of market dominance. The European Union believes that Apple's App Store commissions are too high, limiting competition and innovation, and harming consumer interests. In addition, the EU also believes that Apple's app store ecosystem is closed, limiting developers' choices and harming consumer interests.

We should analyze and evaluate the first shot of the EU Digital Market Act targeting Apple from multiple perspectives.

From the perspective of promoting competition, the introduction of the EU Digital Market Act is aimed at breaking the monopoly position of large technology companies, promoting market competition and innovation. If Apple is found to have violated DMA regulations, it will serve as a warning to other technology companies, encouraging them to comply more with market competition rules and promoting the healthy development of the entire market.

From the perspective of protecting consumer rights, the introduction of the EU Digital Market Act is aimed at protecting consumer interests, preventing large technology companies from abusing their market dominance and harming consumer interests. If Apple is found to have violated DMA regulations, it will force the company to reduce its App Store royalty rate or allow developers to use other payment channels, thereby reducing consumer purchasing costs.

However, we should also recognize that there may be some issues and challenges with the introduction of the EU Digital Market Act.

Firstly, the introduction of the EU Digital Market Act may have a certain inhibitory effect on the innovation and development of technology companies. If technology companies are overly regulated, they may reduce their investment in research and development, thereby affecting the innovation and development of the entire industry.

Secondly, the introduction of the EU Digital Market Act may trigger international trade disputes. If the EU takes overly strict measures against technology companies such as Apple, it may trigger dissatisfaction from countries such as the United States and lead to international trade disputes.

The first shot of the EU Digital Markets Act aimed at Apple presents both opportunities and challenges for major technology companies around the world. Under the premise of promoting competition and protecting consumer rights, relevant regulations should be reasonably formulated and implemented to avoid excessive intervention in the market, thereby promoting the healthy development of the entire market.