EU antitrust chief warns Apple, Meta over fees and disparagement of rivals

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.

Vestager's remarks come as both companies face scrutiny over their compliance with the Digital Markets Act (DMA), aimed at fostering fair competition in the digital ecosystem.

Apple's recent announcement of a new fee structure, including a core technology fee of 50 euro cents per user account per year, has drawn attention from Vestager.

Despite Apple's efforts to comply with EU tech legislation by opening up its closed ecosystem to rivals, concerns have been raised, particularly by major app developers such as Epic Games, regarding the impact of these fees on competition.

Vestager emphasized the need to investigate whether Apple's fee structure hinders the objectives of the DMA, limiting users' ability to benefit from increased choice.

In an interview with Reuters, Vestager expressed reservations about Meta's new subscription fees for Facebook and Instagram.

While Meta has proposed reducing its monthly subscription fee, concerns persist regarding the implications for competition and consumer welfare.

Vestager stressed the importance of engaging in dialogue with Meta to ensure compliance with the DMA and to explore alternative monetisation methods that do not impede competition.

The Austrian privacy activist Max Schrems highlighted broader concerns beyond the fee levels, emphasising the significance of contextual advertising as an alternative revenue model.

Vestager also cautioned against companies disparaging rivals in a manner that could discourage users from switching platforms.

She warned that such behaviour could trigger antitrust investigations, highlightingthe need for fair competition and market openness.

Apple's assertion regarding security risks associated with changes has drawn scrutiny, with Vestager emphasising that the DMA primarily focuses on promoting competition rather than addressing security concerns.

Feedback from developers will play a crucial role in determining whether investigations into potential DMA violations will be initiated against the six companies subject to scrutiny.

(With inputs from Reuters)