Apple has warned that “EU-style rules” proposed by the UK competition watchdog “are bad for users and bad for developers”.
It says EU laws – which have sought to make it easier for smaller firms to compete with big tech – have resulted in some Apple features and enhancements being delayed for European users.
It argues the UK risks similar hold-ups if the Competition and Markets Authority (CMA) pushes ahead with plans designed to open up markets, as the regulator says it is too dominated by Apple and Google.
The CMA told the BBC it rejected Apple’s characterisation of UK competition rules, arguing they were different from those in the EU and helped businesses innovate and grow.
Apple’s intervention comes as international tech regulation was sharply criticised by President Donald Trump.
He did not specify which countries he was unhappy with, but attacked rules he claimed were “designed to harm, or discriminate against, American Technology” in an online post on Monday.
He demanded that nations “show respect to America and our amazing Tech Companies or consider the consequences!”
The US President wrote that all countries with digital taxes, legislation, rules, or regulations were “on notice” that, unless such “discriminatory actions” were removed, tariffs and restrictions on their access to US technology would follow.
The CMA, however, argues that its interventions will be good for users and UK app developers.
In July, it found that “around 90-100% of UK mobile devices” ran on Apple or Google’s mobile platforms, adding that this meant the firms had “an effective duopoly”.
As a result, it said it would require Apple and Google to make changes to their services – for example, permitting app makers to “steer” users to payment systems outside of Apple’s own App Store.
It has now given the companies a chance to respond and will make a final decision in October.
Rivals get ‘tech for free’
In its new statement, Apple argues that the CMA’s approach “undermines the privacy and security protections our users have come to expect, hampers our ability to innovate, and forces us to give away our technology for free to foreign competitors.”
According to Apple, the watchdog’s proposed changes repeat mistakes made by the EU in its enforcement of its tech competition law, the Digital Markets Act (DMA).
Apple has had big fines imposed on it for breaching the DMA.
The CMA wants UK app makers to be able to use and exchange data with Apple’s mobile technology – something called “interoperability”
Without it, app makers cannot create the full range of innovative products and services, it argues.
Apple claims under EU interoperability rules it has received over 100 requests — some from big tech rivals — demanding access to sensitive user data, including sensitive information Apple itself cannot access.
It argues that the rules are effectively allowing other firms to demand its data and intellectual property for free.
However, the CMA argues that, unlike the EU, it is focused on ensuring the interoperability of particular aspects of Apple’s tech, such as digital wallets and watches, so that UK developers can use them to create innovative new apps.
Apple also argues that proposals enabling App developers to steer users to rival payment systems would open the door to scams and threaten the security of users.
In response to Apple’s criticisms, the CMA wrote that UK competition rules work in a fundamentally different way from the EU:
“They are designed to help UK businesses, including our thriving app developer economy, innovate and grow while ensuring UK consumers don’t miss out on innovation being introduced in other countries,” it said in a statement.
“Driving greater competition on mobile platforms need not undermine privacy, security or intellectual property, and as we carefully consider UK-specific steps, we will ensure it does not,” it added.
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