Apple Slams EU's Digital Markets Act, Warns of User Risks
Apple has voiced strong opposition to the European Union's Digital Markets Act (DMA), arguing that the regulation will harm users and expose them to new risks. The tech giant demands a replacement or abolition of the DMA, proposing an independent European regulatory authority to enforce rules more fairly and protect fundamental rights.
Apple's main concerns revolve around the DMA's potential to increase transaction costs for small traders, making their services less valuable. The company also warns that breaking apart platforms' one-stop shop services could benefit only large corporations, not consumers or small businesses.
Furthermore, Apple criticizes the DMA's data-sharing provisions, stating that they could create cybersecurity risks and only benefit large companies with the means to process such data. The tech giant argues that the DMA lacks clear obligations and calls for proportionality, balancing end-user interests with gatekeepers' rights, such as intellectual property.
Meanwhile, European startups face real challenges like difficult financing and complicated business regulations. Without proper consideration, the DMA could end up benefiting influential business interests at the expense of consumers and entrepreneurs. An economic study by Oxera and a UK government study found that platform services disproportionately benefit smaller companies, contradicting the DMA's intended purpose.
The DMA's impact assessment acknowledges the difficulty in predicting real-world effects. Apple joins other industries, such as telecom companies, broadcasters, and banks, in calling for adjustments to the DMA to prevent it from becoming a commercial dispute-resolution tool that shortchanges tech start-ups and citizens.
Apple's opposition to the DMA highlights concerns about increased costs, potential security risks, and the potential misuse of the regulation to benefit large corporations. As the DMA moves forward, politicians must consider all proposals and include adjustment mechanisms to protect consumers, entrepreneurs, and fundamental rights.
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