Potential implications for American consumers as Europe engages in regulatory battle with Apple

The resolution of the U.S. government’s extensive antitrust lawsuit against Apple is expected to be a lengthy process, potentially taking years. However, the challenges faced by the iPhone maker with European regulators provide insight into the potential changes that American customers may experience in the future.

The US lawsuit seeks to prevent Apple from undermining technologies that compete with its own apps in areas such as streaming, messaging and digital payments. The Justice Department also wants to prevent the tech giant from building language into its contracts with developers, equipment manufacturers and consumers that would allow it to acquire or maintain a monopoly.

These are similar themes that the European Commission, the bloc’s executive body and top antitrust watchdog, and Apple have argued over for years.

EU antitrust regulators have launched a series of antitrust cases accusing Apple of violating competition laws in 27 countries, while imposing strict digital rules aimed at preventing tech companies from crashing into digital markets.

Brussels’ efforts will soon begin to affect the company’s business and the experience of iPhone users in Europe. And the changes could be a sign of what’s to come for US Apple users — if the Justice Department has its way, at least.

Here’s a closer look:

MUSIC STREAMING

Music streaming users were generally unable to pay for their Spotify subscriptions directly through their iPhone apps. They didn’t even receive information via email about subscription prices, offers and offers from Spotify or other music streaming services. That’s because Apple places strict restrictions on apps that compete with its own Apple Music service.

But when Spotify complained to the European Union, antitrust regulators launched a years-long investigation that led Apple to stop such practices and a massive €1.8 billion ($2 billion) fine aimed at preventing the company from doing it again.

The European Commission’s competition chief, Margrethe Vestager, said Apple’s practices were “illegal” and “affected millions of European consumers who could not freely choose where, how and at what price they buy music streaming subscriptions”.

DUES

Apple attempted to settle another EU antitrust case by proposing to allow third-party mobile wallet and payment service providers access to tap-and-go payments on its iOS operating system.

Apple offered the license to the European Commission, the bloc’s executive body and top antitrust watchdog, after it accused the company in 2022 of abusing its dominant position by restricting access to mobile payments.

The commission had investigated whether Apple Pay’s rules required online stores to make it the preferred or default option, effectively shutting out competing payment systems. It had also looked into concerns that it would limit rival payment systems’ access to the iPhone’s contactless payment functionality.

The commission is still considering the offer. It has sought feedback from “stakeholders” on the proposals before making a decision on the case.

APP STORES

Apple has long been of the opinion that the iPhone and other iOS devices can only have one application marketplace – their own. However, the recently enacted sweeping EU regulations have forced the company to open up a so-called “walled garden” and allow third-party app stores to compete.

The EU’s Digital Markets Act is a vast rulebook targeting Big Tech “gatekeeper” companies to comply with. One of its goals is to break down closed technology ecosystems that lock consumers into one company’s products or services.

According to the DMA, technology companies cannot prevent consumers from contacting companies outside their platform. So Apple has been forced to allow Europeans to download iPhone apps from stores not managed by the US tech giant – a move it has long opposed.

In a sign of that reluctance, EU regulators said they wanted to question Apple’s accusations that it prevented video game company Epic Games from setting up its own app store. But Apple later reversed course, paving the way for Fortnite maker Epic to launch a rival app store.