EU Spares Apple Maps and Apple Ads
Summary
The European Commission has determined that Apple Maps and Apple Ads do not qualify as gateways under the EU's Digital Markets Act, citing their limited usage and scale. Apple remains classified as a gatekeeper overall.
Key Insights
What is the Digital Markets Act (DMA) and why does it matter?
The Digital Markets Act is a 2022 European Union regulation that became active in May 2023, designed to ensure fair and open digital markets by restricting large technology companies from abusing their dominant market power. Companies designated as 'gatekeepers' under the DMA must permit interoperability, allow third-party app stores, and stop self-preferencing practices. The regulation currently applies to seven major firms: Apple, Alphabet, Amazon, ByteDance, Meta, Microsoft, and Booking. A company qualifies as a gatekeeper if it has over €75 billion market capitalization, €7.5 billion annual turnover, and over 45 million monthly EU users.
Why weren't Apple Maps and Apple Ads designated as gatekeepers, and does this mean Apple is no longer regulated under the DMA?
The European Commission determined that Apple Maps and Apple Ads do not constitute important gateways for business users to reach end users, citing Apple Maps' relatively low overall usage rate in the EU and Apple Ads' very limited scale in the online advertising sector. However, this decision does not affect Apple's overall gatekeeper designation under the DMA. Apple remains classified as a gatekeeper due to other services it operates, such as its App Store and iOS operating system, which continue to be subject to DMA obligations. The Commission will continue monitoring these services for any substantial market changes.