EU Targets Apple Maps in Antitrust Investigation

The European Commission has compelled Apple to open up app distribution and connectivity in most European countries, and now it may be turning its attention to Apple Maps. The EU’s Digital Markets Act (DMA) was enacted in late 2022 to prevent large companies from abusing their market power, ensuring fair competition for new players and smaller competitors. The DMA introduced a “gatekeeper” designation for companies that meet certain thresholds, with Apple being among the six big tech companies designated as gatekeepers in late 2023.

Apple was required to comply with new regulations to open up competition in services such as the App Store, Apple Pay, and Safari’s WebKit browser engine. This led to significant changes in the EU, including a revamped App Store fee structure, allowance for alternative app marketplaces, opening up NFC payments, and permitting developers to build their own browser engines on the iPhone.

The European Commission initially targeted the iPhone for compliance with the DMA, but later expanded the scope to include the iPad as well. The decision to include the iPad was based on its importance as a gateway for reaching customers, despite not meeting the initial thresholds set by the DMA.

Now, Apple Maps has come under the scrutiny of regulators as it has surpassed the DMA’s gatekeeper threshold of 45 million active monthly users. Apple has also notified the European Commission that its advertising services have reached the same mark. The Commission has 45 working days to decide whether Apple Maps and Apple Ads should be designated as gatekeepers, with Apple already submitting a rebuttal against the designation.

If Apple Maps is designated as a gatekeeper, it remains to be seen what specific changes would be required. Apple has already introduced features like setting a default navigation app in iOS 18.4, but may be compelled to allow third-party developers more integration with iOS and Apple Maps.

In conclusion, the regulation of Apple Maps under the DMA could have significant implications for Apple’s operations in the EU. The company is contesting the designation, particularly in the case of Apple Ads, which it views as a minor aspect of its business. However, the scrutiny of Apple Maps raises questions about its usage and features compared to competitors like Google Maps and Waze. The outcome of the European Commission’s decision will determine the future course of action for Apple in complying with the DMA requirements.