The European Commission has determined that Apple and Google are both violating the Digital Markets Act (DMA). In Apple’s case, the EC says that Apple must comply with its interoperability obligations in iOS. And in Google’s, it has found that Google Search and Google Play are both in violation of various DMA requirements.
“Interoperability enables a deeper and more seamless integration of third-party products with Apple’s ecosystem,” the Commission explains of Apple. “Interoperability is therefore key to opening up new possibilities for third parties to develop innovative products and services on Apple’s gatekeeper platforms. As a result, a wider choice of products will be available to consumers in Europe which are compatible with their Apple devices.”
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The EC says it is “assisting” Apple in its compliance by providing a detailed explanation of the behaviors it must change in iOS to comply with the DMA. It must adapt 9 features–to allow third-party smartwatches, headphones, TVs, and other connected devices to interoperate with iOS in the same ways that Apple’s devices do. And it must improve “the transparency and effectiveness of the process that Apple devised for developers interested in obtaining interoperability with iPhone and iPad features.”
The EC’s decision is legally binding, so Apple is required to make the changes it demands and on the schedule it demands. Apple, predictably, is not amused.
“Today’s decisions wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules,” an Apple statement reads. “It’s bad for our products and for our European users. We will continue to work with the European Commission to help them understand our concerns on behalf of our users.”
As for Google, the Commission has informed the online giant that its Search and Play offerings both violate the DMA.
“The Commission has informed Alphabet [Google’s parent company] of its preliminary view that certain features and functionalities of Google Search treat Alphabet’s own services more favorably compared to rival ones, thus not ensuring the transparent, fair and non-discriminatory treatment of third-party services as required by the DMA,” the decision explains. “In addition, the Commission has informed Alphabet of its preliminary view that its app marketplace Google Play does not comply with the DMA, as app developers are prevented from freely steering consumers to other channels for better offers.”
The EC notes that Google did make changes to Search in an attempt to comply with its DMA obligations. But it still “treats its own services, such as shopping, hotel booking, transport, or financial and sports results, more favorably in Google Search results than similar services offered by third parties” and “gives its own services more prominent treatment compared to others by displaying them at the top of Google Search results or on dedicated spaces, with enhanced visual formats and filtering mechanisms.”
Google Play is required to allow app developers to “inform customers of alternative cheaper possibilities, to steer them to those offers, and to allow them to make purchases” at no additional cost. But as is the case in the U.S. and elsewhere, it does not do so, and instead prevents app developers “from steering customers to the offers and distribution channels of their choice.” It also found that the fees Google charges are “beyond what is justified,” a comment that could be applied to all mobile app store fees.
Apple’s issues are much further along than Google’s, so the online giant could still defend its behavior and issue a formal reply that tries to contradict the findings. If the EC’s views are confirmed, as they were with Apple, Google would then be forced to make the changes it wants. Google, like Apple, is not amused.
“The Commission’s findings require us to make even more changes to how we show certain types of Search results, which would make it harder for people to find what they are looking for and reduce traffic to European businesses,” a Google statement complains. “The Commission findings on Android and Play create a false choice between openness and security. They risk exposing people in Europe to more malware and fraud and may mean that we can’t provide as much openness in the future.”
