Apple vs Meta: Privacy Clash Over EU Interoperability Sparks Market Reactions
December 18, 2024A final decision regarding Apple's compliance with the DMA is anticipated in March 2025, following the European Commission's interoperability proceedings that began in September 2024.
Apple emphasizes its commitment to user privacy as a fundamental human right, contrasting with Meta's approach, which views privacy as a revenue source.
Apple recently rejected Meta's proposal to integrate its AI chatbot, Llama, into the iPhone, citing privacy concerns, which led to criticism from Meta CEO Mark Zuckerberg.
The rivalry between Apple CEO Tim Cook and Meta CEO Mark Zuckerberg has intensified since 2014, shaped by disagreements over privacy policies and business models.
Under the Digital Markets Act (DMA), Apple is required to allow competitors and app developers to interoperate with its services, or face fines of up to 10% of its global annual turnover.
Apple has raised concerns about Meta Platforms' requests for access to its operating software, fearing potential compromises to user privacy as the EU pushes for interoperability among tech products.
Apple has implemented features like App Tracking Transparency to protect user data, reinforcing its stance on prioritizing privacy in its product design.
The European Commission has expressed dissatisfaction with Apple's compliance efforts regarding interoperability, publishing a list of proposed measures for consultation.
The resolution of the ongoing dispute between Apple and Meta could significantly impact tech competition, consumer protection, and privacy standards within the EU.
The proposed interoperability rules, published on December 18, 2024, are part of the EU's broader initiative to limit Big Tech's dominance and promote fair competition in digital markets.
Apple's core services, including iOS and the App Store, are central to this discussion, particularly as interoperability could allow non-Apple devices to connect seamlessly with Apple's products.
Following these developments, Meta's stock fell by 3.59%, while Apple's stock decreased by 2.14% on December 18, 2024, reflecting market reactions to the ongoing tensions.
Summary based on 38 sources
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Sources
TechCrunch • Dec 19, 2024
Apple and Meta go to war over interoperability vs. privacy | TechCrunchYahoo Finance • Dec 19, 2024
Privacy at Stake? Apple Challenges EU Rules Over Meta's Push for iOS IntegrationYahoo Finance • Dec 19, 2024
Apple complains Meta requests risk privacy in spat over EU efforts to widen access to iPhone tech