Apple is facing scrutiny from European regulators once again. The European Commission is considering categorizing Apple Maps and Apple Ads as “gatekeeper services” under the Digital Markets Act (DMA). This classification would subject them to increased oversight for competition and transparency. Apple asserts that neither service meets the necessary criteria. If labeled as gatekeepers, these platforms would join Apple’s App Store, Safari, and iOS, which are already designated as gatekeepers under the EU’s broad tech regulation. The Commission has a 45-day window to finalize its decision.
In response, Apple has contested the classification. The company argues that Apple Maps and Apple Ads lack the market dominance required to be deemed gatekeepers. Apple pointed out that Apple Maps has limited usage in the EU compared to competitors like Google Maps and Waze. Additionally, Apple stated that its Apple Ads platform is smaller than similar services offered by Google, Meta, Microsoft, TikTok, and X, as reported by Reuters.
Apple’s resistance is not unexpected, considering the company was previously fined €500 million under the DMA, alongside Meta, for violating the legislation. The fines were related to Apple’s App Store regulations, browser defaults, and web distribution limitations.
If Apple’s Ads and Maps are included in the gatekeeper list, both services will be subject to heightened scrutiny, including requirements to share more data with competitors and ensure system interoperability.
The Digital Markets Act, in effect since earlier this year, targets “core platform services” identified by the EU as crucial digital ecosystems acting as essential gateways between businesses and consumers. The aim is to combat monopolistic practices by compelling these companies to enhance openness, interoperability, and prevent self-preferencing.
To qualify as a gatekeeper, a service must have a minimum of 45 million monthly active users and 10,000 yearly business users within the EU, along with a substantial market presence. The Commission has received data from Apple indicating that both Apple Maps and Apple Ads meet these numerical thresholds, prompting the ongoing review.
If the Commission proceeds, Apple would have six months to adhere to the DMA’s transparency and interoperability regulations. This could lead to the EU mandating Apple to open up these services similarly to the changes imposed on iOS and the App Store, potentially requiring modifications in ad sales and cross-platform connectivity for Apple Maps.
Apple’s situation parallels Google’s experience earlier in the year. The EU previously designated Google Maps and Google Ads as gatekeepers after extensive antitrust investigations. Regulators alleged that Google unfairly linked Google Ads to its search and display networks due to its advertising dominance, limiting alternatives for advertisers.
The ruling resulted in hefty fines and stricter compliance measures for Google. Presently, the European Commission is assessing whether Apple’s smaller yet closely integrated services pose a comparable risk, especially given Apple’s expanding influence in advertising through App Store search ads and privacy-centric tracking systems that competitors argue put them at a disadvantage.
Should the Commission proceed with the classification, Apple Maps and Apple Ads will have until mid-2025 to comply fully. This could entail new data-sharing regulations, transparency mandates regarding ad pricing, and potentially restrictions on how Apple promotes its services.
Despite Apple’s stance that the EU’s strategy risks hindering innovation rather than fostering competition, regulatory scrutiny on big tech dominance persists, indicating that Apple’s conflict with Brussels is ongoing.