EU Crackdown on Apple: Impact on Crypto Explained

EU Crackdown on Apple: Impact on Crypto Explained

On Monday, the European Commission, the EU’s regulatory agency, declared that Apple is not complying with the recently passed Digital Markets Act (DMA). This historic regulation aims to limit the power of large digital companies. According to the Commission’s initial conclusions, Apple’s software Store standards prevent software developers from directing users to other places where they can make purchases.

The DMA has rules prohibiting “anti-steering” tactics in an effort to prevent Big Tech companies from abusing their dominating market positions. These regulations specifically forbid digital companies from preventing customers from telling them about less expensive options or subscriptions available outside of their app stores.

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The European Union’s Apple Crackdown

The Commission also chastised Apple for enforcing limitations that prevent developers from openly endorsing proposals and entering into agreements via the distribution channels of their choice. “Apple’s App Store rules prevent app developers from freely steering consumers to alternative channels for offers and content,” declared the European Commission.

Additionally, developers can include connections to outside websites where users can purchase content using Apple’s current method. Nevertheless, these relationships have limitations that prevent direct communication and advertising.

After more investigation, it was discovered that Apple charges more than the Commission deems “strictly necessary” for the first customer acquisition through the App Store. The Commission did not define a necessary amount. Still, if Apple is found in violation of the DMA, it might be fined up to 10% of its annual worldwide revenue.

Apple has already encountered regulatory obstacles in the European Union. Earlier this year, Apple was fined €1.8 billion ($1.93 billion) for engaging in anti-competitive behavior in the music streaming industry. Furthermore, the Commission is still leery of Apple’s new methods even after recently modifying its App Store policy to allow downloads from websites and third-party stores.

The Commission is investigating Apple’s fundamental technology cost of €0.50 ($0.54) for each installed software piece outside of its software Store. This inquiry also seeks to ascertain whether this charge conforms with DMA guidelines.

The Commission is also evaluating whether Apple’s processes for downloading apps or alternative app stores comply with the bloc’s regulations. We’re also reviewing the requirements for direct app distribution on iPhones or alternative app stores.

Current Status Of Cryptocurrency Law Enforcement Within EU

At the same time, the European Union is strengthening controls on the cryptocurrency sector. Italy is getting ready to impose strict regulations to monitor the hazards associated with digital assets. According to a draft decree obtained by Reuters, Italy’s cabinet is anticipated to accept measures involving heavy fines ranging from €5,000 ($5,400) to €5 million ($5.4 million).

Insider trading, unauthorized disclosure of insider information, and market manipulation will all result in a fine. As the EU braces itself to enforce MiCA, countries select their local regulatory organizations, National Competent Authorities (NCA), to monitor the crypto sector. Furthermore, Italy’s proactive approach demonstrates the EU’s dedication to strict regulation in the financial and technological industries.

The convergence of these technological and cryptocurrency-related regulatory advancements points to a strict enforcement strategy from the EU. The DMA’s focus on Apple demonstrates the bloc’s commitment to limiting the influence of large companies and fostering fair competition. Similarly, the strict guidelines set forth by MiCA indicate that insider trading and market manipulation in cryptocurrency will not be tolerated.

These governmental actions portend greater scrutiny and more stringent compliance requirements for the cryptocurrency sector. Businesses involved in both the tech and cryptocurrency sectors might need to review their approaches to conform to the EU’s changing digital regulatory framework.

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