EU Accuses Apple of Geo-blocking, Demands Solution Within a Month
November 12, 2024National consumer protection authorities, including Germany's Bundesnetzagentur, are collaborating through the Consumer Protection Cooperation (CPC) network to investigate these issues.
The European Union has raised concerns that Apple's media services restrict access to digital content based on users' geographic locations, potentially violating the Geo-blocking Regulation established in 2018.
This action is part of a broader EU initiative aimed at ensuring compliance from major tech companies with the bloc's regulatory frameworks.
Apple is facing its first potential fine under the Digital Markets Act for allegedly restricting app developers from directing users to cheaper alternatives.
Despite strong sales growth, Apple's net income fell by 35% to $14.7 billion, largely due to a significant tax burden in Europe.
As of the latest reports, Apple has not yet responded to the EU's concerns, and its stock has seen a slight decrease, trading at $224 per share.
The EU's demands for uniform access to apps and services overlook the complexities of international rights agreements that govern media availability.
The EU's Digital Markets Act has also delayed software updates for iPhone users in Europe, impacting the rollout of features like Apple Intelligence.
Historically, Apple has acted quickly to regulatory challenges, as seen when it offered $10 million to resolve a ban on its iPhone 16 in Indonesia.
There is potential for dialogue between Apple and the CPC Network, which could lead to a resolution if Apple makes the necessary changes to address geoblocking.
In fiscal year 2024, Apple reported over $101 billion in sales in Europe, underscoring the region's significance to its overall revenue.
In related news, Apple reported $94.9 billion in sales for the September quarter, driven by a 5.5% increase in iPhone sales.
Summary based on 26 sources
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Sources
The Verge • Nov 12, 2024
Apple receives EU warning to end ‘discriminatory’ geo-blocking practicesTechCrunch • Nov 12, 2024
Apple's geoblocks on media services in EU draw consumer protection ire | TechCrunchYahoo Finance • Nov 12, 2024
Apple gets EU warning to stop geo-blocking on App, iTunes storesYahoo Finance • Nov 12, 2024
EU Asks Apple to End Geo-Blocking on Media Services