EU's DMA Emphasizes Big Tech Obligations and Responsibilities
Apple Faces Potential Violations After Changing Commission Policy
UK, India, and Others Also Pursuing DMA-Like Laws
Apple, which reclaimed the No. 1 spot in market capitalization by partnering with ChatGPT, is expected to face a major setback in the second half of this year. The European Union (EU) is projected to impose fines of up to 70 billion KRW per day on Apple under the Digital Markets Act (DMA). Similar laws are being pursued in other countries such as the UK and India, potentially shaking Apple's position.
Apple Faces Risk of Up to 70 Billion KRW Daily Fine
According to the ICT industry on the 17th, the EU is expected to impose massive fines on Apple for violating the DMA within this year.
The DMA is a so-called 'Big Tech Abuse Prevention Act' designed to curb the excessive market dominance of large technology companies. The EU designated six companies, including Alphabet, Amazon, Apple, and Meta, as 'gatekeeper platforms' based on company size, number of users, and revenue, applying the DMA to them. The purpose is to promote entry of small and emerging companies and create an open and fair competitive digital market environment. Gatekeepers are required to comply with obligations such as prohibiting preferential treatment of their own services and ensuring fair access for users.
If DMA obligations are violated, fines of up to 5% of the global daily revenue can be imposed. Apple's daily revenue is approximately 1 billion USD, so the daily fine can reach up to 50 million USD (about 69.5 billion KRW). Although previous penalties were minor for Apple, which has a market capitalization exceeding 4,000 trillion KRW, the DMA presents a different scenario.
In January, Apple took measures to comply with the DMA by allowing applications to be downloaded from markets other than its own App Store on the iPhone. However, to make it difficult to leave the App Store, Apple has been charging huge commissions on apps sold outside the App Store targeting small app developers, which is seen as a tactic that goes against the intent of the DMA obligations.
Similar Laws to DMA Emerging One After Another
Laws to check big tech companies like the DMA are also being pursued in the UK, India, and Japan. The UK Parliament passed the 'DMCC (Digital Markets, Competition and Consumer)' law last month, similar to the DMA, and it is set to be enforced by the end of this year. While the DMA designates gatekeepers, the DMCC focuses on regulating by granting Strategic Market Status (SMS). To this end, the UK Competition and Markets Authority has established a Digital Markets Unit, which requires companies designated as SMS to follow codes of conduct determined by the unit. The codes of conduct emphasize principles such as fair trade, openness, trust, and transparency. It is stipulated that companies violating these can be fined up to 10% of their global revenue.
India is also promoting the Digital Competition Bill (DCB), which can regulate large digital companies based on criteria such as revenue, number of users, and market influence. Japan has passed the 'Smartphone Software Competition Promotion Act' targeting Apple, Google, and others, as countries worldwide strengthen regulations on big tech. An IT industry official said, "Apple will resist platform regulations and fines from various countries," adding, "There is a possibility of years-long legal battles."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
