The Facebook app is displayed on the screen of an iPhone.
Fabian Sommer | alliance image | Getty Images
LONDON – Facebook accused Apple of using its power to “harm developers and consumers” as it welcomed bills put forward by the European Commission, the EU’s executive arm.
The new laws announced on Tuesday, known as the Digital Markets Act (DMA) and the Digital Services Act (DSA), are designed to keep tech giants under control. The DMA introduces rules for platforms that act as “gatekeepers” in the digital sector, while the DSA is designed to address illegal and harmful content by asking platforms to remove it quickly.
“We expect the DMA to also set limits for Apple,” a Facebook spokesman said in a statement shared with CNBC. “Apple controls an entire ecosystem from the device to the app store and apps, and uses that power to hurt developers and consumers, as well as big platforms like Facebook.”
Apple did not immediately respond to CNBC’s request for comment.
The EU Commission said it could fine porters up to 10% of their global annual turnover worldwide if they breached the proposed rules. For Apple, that would be around $ 26 billion.
Apple and Facebook have been in contention since Apple announced a privacy tool that allows users to prevent advertisers from tracking them through different apps.
When the feature was announced, Facebook, which makes money by selling ads, claimed it would harm developers. Apple responded by saying, “When invasive tracking is your business model, you don’t embrace transparency and customer choice.”
Mixed answers
Facebook, owner of Instagram and WhatsApp, has struggled to keep misinformation, hate speech and extremist content off its platforms for years. However, he said he welcomed the “harmonized EU rules”.
The proposed laws, which have yet to be passed by the European Parliament before they are passed, were well received by other tech companies like Spotify, which filed an antitrust lawsuit against Apple in March 2019, saying Apple Music has an “advantage unfair “on rivals.
“The DMA is a significant step towards greater innovation and fair competition in the European market,” said Horacio Gutierrez, head of global affairs and legal director of Spotify. “There is now a global consensus that large porters’ platforms harness their power in a way that slows down innovation and harms consumers, and that regulation is needed to prevent damage before it becomes irreparable.”
TikTok, which has also been criticized for hosting questionable content on its platform, also welcomed the rules. Caroline Greer, TikTok’s director of government relations and public policy in Brussels, said: “It is clear that platforms play an important role in society, and it is right that they are transparent and accountable.”
Sinéad McSweeney, vice president of public policy for Twitter EMEA, said his company welcomed the publication of the events, saying they are reaching a “critical political situation” in Europe and around the world.
Google, accused of trying to override companies in other industries and hosting questionable material on YouTube, was less positive about the new legislation.
Karan Bhatia, Google’s vice president of government affairs and public policy, said: “We are concerned that they seem to be specifically targeted at a handful of businesses and make it difficult to develop new products to support small businesses in Europe.”
Bhatia added: “We will continue to advocate for new rules that support innovation, increase accountability and promote economic recovery for the benefit of European consumers and businesses.”
Amazon, which has contributed to the demise of some physical stores, declined to comment, instead pointing to a blog post by Xavier Garambois, Amazon’s vice president for EU retail, describing the position general of the company.
“We share the European Commission’s ambition to remove barriers so that consumers and businesses of all sizes can make the most of the European single market,” the blog published on 3 December says.
“It is in the interest of European consumers that … the policy continues to allow creativity, while ensuring that the same rules apply to all companies.”