Apple has caught a break from European regulators after the European Commission decided not to designate the tech giant’s Maps and advertising services as “gatekeepers” under the block’s stringent Digital Markets Act.
The Commission announced Thursday that Apple Maps and Apple Ads don’t qualify as critical gateways that business users need to reach their customers. This decision marks a rare win for the iPhone maker, which has faced mounting regulatory pressure across Europe in recent years.
The European Commission’s reasoning came down to market presence, or the lack thereof. Officials pointed to Apple Maps’ “relatively low overall usage rate” across EU member states as a key factor in their assessment. When it comes to advertising, the picture looks similar. Apple Ads simply doesn’t have enough scale in Europe’s competitive online advertising sector to warrant the gatekeeper label.
“This assessment is based on a number of considerations, including that Apple Maps has a relatively low overall usage rate in the EU, and that Apple Ads has very limited scale in the online advertising sector in the EU,” the Commission stated in its announcement.
The news had minimal impact on Apple’s stock price, which dipped just 0.1% in pre-market trading Thursday. Meanwhile, retail investor sentiment surrounding the company remained firmly in bullish territory on Stocktwits at the time of writing.
Apple Responds With Relief
Apple didn’t hide its satisfaction with the decision. The company released a statement welcoming the Commission’s assessment, emphasizing the competitive landscape its services face in Europe.
“These services face significant competition in Europe, and we’re pleased the Commission recognized they do not meet the criteria for designation under the Digital Markets Act,” Apple said, according to a Reuters report.
The remark highlights Apple’s ongoing contention that its various services serve markets that are extremely competitive, even though it holds a dominant position in other areas.
Gatekeeper is not just a formality, as it entails significant consequences for the way companies operate in the European Union. Platforms identified as gatekeepers, as they do under the Digital Markets Act, are deemed essential “bottlenecks” that multiple companies have to go through in order to serve consumers.
What was once a gatekeeper role is subject to a tight slate of regulations intended to prevent such companies from engaging in anti-competitive activities. This can include requirements to allow third-party app stores, support compatibility with rival services, and grant access to business data generated on their platforms.
Apple’s Tightrope Walk Between Dominance and Competition
While both Maps and Ads were not considered gatekeepers, the same cannot be said of the corporation.
After all, the European Commission categorised Apple as a gatekeeper way back in 2023, lumping the technology giant with some of the world’s largest technology companies, including Alphabet, which operates the Google search engine, Meta Platforms, Microsoft, Amazon, and ByteDance, which operates the popular video-sharing app called TikTok.
Apple’s iOS, iPadOS, and App Store have been termed as gatekeepers. The above labels have already led Apple to make major adaptations to the way in which it operates in Europe, such as offering alternative app stores, which the company had earlier been reluctant to do.
The interesting reality the Commission’s decision highlights is Apple’s position in different markets. On one side, the company yields immense power in smartphone operating systems and app distribution, while its businesses in Maps and advertising are ardently competed against.
How Does Apple Compete in Google and Meta’s Shadow?
In the field of mapping, Apple goes toe-to-toe with Google Maps, a behemoth in the field, as well as services from TomTom, HERE Technologies, and others. The online advertising market is even more crowded than the former, with Google and Meta holding the majority of digital ad spending in Europe.
Apple’s ad business, which consists mainly of ads within the App Store and on Apple News, remains very small compared to these giants. This might indicate that it has slowly grown its advertising business but also clearly hasn’t reached the scale that would trigger regulatory concerns in the EU.
The interesting reality the Commission’s decision highlights is Apple’s position in different markets. On one side, the company yields immense power in smartphone operating systems and app distribution, while its businesses in Maps and advertising are arduously competed against.
In the field of mapping, Apple goes toe-to-toe with Google Maps a behemoth in the field-as well as services from TomTom, HERE Technologies, and others. The online advertising market is even more crowded than the former, with Google and Meta holding the majority of digital ad spending in Europe.
Apple’s ad business, which consists mainly of ads within the App Store and on Apple News, remains very small compared to these giants. This might indicate that it has slowly grown its advertising business but also clearly hasn’t reached the scale that would trigger regulatory concerns in the EU.
