Apple Contends UK’s ‘EU-Style’ Antitrust Regulations Harm Users and Developers – Source: www.techrepublic.com

Apple has warned the UK government against applying “EU-style rules” on technology companies. The iPhone maker argues that these stipulations threaten the security of its products, reduce its incentive to innovate, and unfairly target its integrated product ecosystem.

“We’re concerned these EU-style rules the UK is advancing are bad for users and bad for developers,” an Apple spokesperson told TechRepublic. “This approach undermines the privacy and security protections our users have come to expect, hampers our ability to innovate, and forces us to give away our technology for free to foreign competitors.

“We will continue to engage with the regulator to make sure they fully understand these risks.”

UK claims Apple is using its market dominance to squash its competition

Apple’s comments come as it submits a response to the Competition and Markets Authority’s (CMA) proposal to designate it, along with Google, as having “Strategic Market Status” (SMS). An SMS designation means it would be subject to bespoke conduct requirements designed to curb anti-competitive practices in the UK. Apple and Google hold an “effective duopoly,” with between 90% and 100% of all UK smartphones running on iOS or Android.

The CMA is concerned that Apple may discourage developers from offering alternative payment options for in-app purchases by using “choice architecture,” such as default settings that favour their own services. It also claims Apple restricts interoperability for third-party wearable devices.

A final decision on whether Apple and Google will receive Strategic Market Status will be made by Oct. 22; if they do, the CMA may recommend certain mitigations. Apple says that the CMA’s proposed interventions lack legitimacy, as they are based on the views of just 12 developers and one trade group, which is not representative of the thousands of app creators that use the App Store.

Europe shares the UK’s concerns and has fined Apple €500 million

The EU is addressing many of these same concerns with its Digital Markets Act (DMA). It has fined Apple €500 million for not allowing app developers to freely steer users toward external purchasing options. It is also demanding that it enhance interoperability between iOS, iPadOS, and third-party devices.

Apple is appealing its fine, stating that it has observed scams, bait-and-switch tactics, and circumvention of parental controls as a result of Europe’s steering requirements. It has also received over a hundred interoperability requests demanding access to sensitive user data in the region, so being forced to accept them would threaten user security.

The company also argues that interoperability requirements compel it to disclose its intellectual property to competitors, who may wish to copy it, thereby infringing on its fundamental property rights and undermining its incentive to innovate.

UK argues its antitrust regulations differ from the EU’s

In response, the CMA claims that its antitrust legislation operates differently from the EU’s.

“They are designed to help UK businesses, including our thriving app developer economy, innovate and grow while ensuring UK consumers don’t miss out on innovation being introduced in other countries,” a spokesperson told the BBC.

“Driving greater competition on mobile platforms need not undermine privacy, security or intellectual property, and as we carefully consider UK-specific steps, we will ensure it does not.”

President Donald Trump sides with Apple

Apple’s stance on non-US regulations echoes that of President Donald Trump. On Monday, he threatened to impose higher tariffs and strict export restrictions on chips and components against countries that “attack” US tech companies with “Digital Taxes, Legislation, Rules, or Regulations.”

“Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” he wrote on Truth Social. “They also, outrageously, give a complete pass to China’s largest Tech Companies. This must end, and end NOW!”

Meta and several other tech companies have also claimed that European regulations are discriminatory and inconsistent.

Apple has gotten its own way with the UK before. Earlier this month, the government withdrew its demand for Apple to create a backdoor into its Advanced Data Protection encryption system after the company and US government pushed back.