Regulation
EU Cracks Down on Apple for Violating Tech Rules, How Does This Impact Crypto?
THE European UnionThe European Union (EU) regulator, the European Commission, announced on Monday that Apple is in breach of the new Digital Markets Act (DMA). This landmark law aims to limit the influence of large technology companies. The Commission’s preliminary findings indicate that Apple’s App Store policies prevent app developers from guiding customers to other purchasing options.
The DMA, adopted to prevent large technology companies from abusing their dominant market position, includes provisions against “anti-management” practices. Specifically, these rules prohibit tech giants from preventing companies from informing users about cheaper alternatives or subscriptions outside of their app stores.
The European Union’s crackdown on Apple
Additionally, the Commission criticized Apple for imposing restrictions that prevent developers from freely promoting deals and signing contracts through the distribution channels of their choice. The European Commission said: “Apple’s App Store rules prevent app developers from freely directing consumers to alternative channels for offers and content. »
Additionally, Apple’s current system allows developers to provide links to external websites to purchase content. However, these links are subject to restrictions that hinder direct communication and promotion.
Further review revealed that Apple’s fees for initial customer acquisition through the App Store exceed what the Commission considers “strictly necessary.” Although the Commission has not clarified what constitutes necessary fees, Apple faces potential fines of up to 10% of its total annual worldwide revenue if found guilty of violating the DMA .
This is not the first time Apple has faced regulatory challenges in the EU. Earlier this year, Apple has been fined 1.8 billion euros ($1.93 billion) for anti-competitive practices in the music streaming market. Additionally, despite recent adjustments to App Store policies, such as allowing downloads from third-party websites and stores, the Commission remains wary of Apple’s new practices.
The Commission is currently examining Apple’s base technology fee of €0.50 ($0.54) per app installed outside its App Store. Additionally, this investigation aims to determine whether these fees comply with DMA regulations.
Additionally, the Commission is evaluating whether Apple’s procedures for downloading app stores or alternative apps comply with the bloc’s rules. Eligibility criteria for offering alternative app stores or direct distribution of apps to iPhone are also under review.
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State of crypto regulation in the EU
At the same time, the European Union is strengthening regulations on the cryptocurrency market. Italy is preparing to implement strict measures to monitor risks related to crypto assets. According to a draft decree reviewed by Reuters, the Italian government is expected to approve measures including hefty fines ranging from 5,000 euros ($5,400) to 5 million euros ($5.4 million).
The fine will be imposed in cases of insider trading, illegal disclosure of inside information or market manipulation. As the EU prepares to enforce Mica, countries determine their local regulatory bodies, called National Competent Authorities (NCAs), to oversee the crypto sector. Furthermore, Italy’s proactive stance illustrates the EU’s commitment to robust supervision in the technology and financial sectors.
The intersection of these regulatory developments in technology and crypto suggests a rigorous enforcement approach from the EU. The crackdown on Apple under the DMA highlights the bloc’s determination to limit the power of dominant companies and promote fair competition. Likewise, the strict measures put in place by MiCA signal a no-tolerance policy towards market manipulation and insider trading in the crypto space.
For the crypto industry, these regulatory measures imply a future of increased oversight and stricter compliance requirements. Companies operating in both the tech and crypto markets may need to reassess their strategies to align with the EU’s evolving digital regulatory landscape.
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