“`html
Apple has cautioned that “EU-style rules” being considered by the UK’s Competition and Markets Authority (CMA) “are bad for users and bad for developers.”
The tech giant contends that European Union laws, designed to foster competition between smaller firms and major tech corporations, have resulted in delays for some Apple features and enhancements for European users.
Apple argues that the UK could face similar setbacks if the CMA proceeds with its plans to open up markets, which the regulator believes are excessively dominated by Apple and Google.
The CMA refuted Apple’s characterization of UK competition rules in a statement to the BBC, asserting that they differ from those in the EU and are intended to help businesses innovate and expand.
Apple’s intervention comes amid sharp criticism of international tech regulation from former President Donald Trump.
While not specifying particular countries, Mr. Trump attacked rules he claimed were “designed to harm, or discriminate against, American Technology” in an online post on Monday.
He demanded that nations “show respect to America and our amazing Tech Companies or, consider the consequences!”
The former US President warned that all countries with digital taxes, legislation, rules, or regulations were “on notice” that unless such “discriminatory actions” were removed, tariffs and restrictions on their access to US technology would follow.
The CMA, however, maintains that its interventions will benefit both users and UK app developers.
In July, the CMA reported that “around 90-100% of UK mobile devices” operate on either Apple’s or Google’s mobile platforms, leading it to conclude that the firms possess “an effective duopoly.”
Consequently, the CMA indicated that it would require Apple and Google to modify their services, for example, by allowing app developers to “steer” users to payment systems outside of Apple’s App Store.
The companies have been given an opportunity to respond, with a final decision expected in October.
In its recent statement, Apple argues that the CMA’s approach “undermines the privacy and security protections our users have come to expect, hampers our ability to innovate, and forces us to give away our technology for free to foreign competitors.”
According to Apple, the watchdog’s proposed changes mirror mistakes made by the EU in its enforcement of the Digital Markets Act (DMA), its tech competition law.
Apple has faced significant fines for violating the DMA.
The CMA aims to enable UK app developers to utilize and exchange data with Apple’s mobile technology, a concept known as “interoperability.”
The CMA argues that without interoperability, app developers cannot create the full range of innovative products and services.
Apple claims that under EU interoperability rules, it has received over 100 requests — some from major tech rivals — demanding access to sensitive user data, including information Apple itself cannot access.
Apple contends that these rules effectively allow other firms to demand its data and intellectual property without compensation.
However, the CMA argues that, unlike the EU, its focus is on ensuring interoperability for specific aspects of Apple’s technology, such as digital wallets and watches, to enable UK developers to create innovative new apps.
Apple also asserts that proposals enabling app developers to direct users to alternative payment systems would create opportunities for scams and compromise user security.
In response to Apple’s criticisms, the CMA stated that UK competition rules operate differently from those in the EU:
“They are designed to help UK businesses, including our thriving app developer economy, innovate and grow while ensuring UK consumers don’t miss out on innovation being introduced in other countries,” it said in a statement.
“Driving greater competition on mobile platforms need not undermine privacy, security or intellectual property, and as we carefully consider UK-specific steps, we will ensure it does not,” it added.
Sign up for our Tech Decoded newsletter to follow the world’s top tech stories and trends. Outside the UK? Sign up here.
“`