Apple says its Ads and Maps services are too small to be gatekeepers under EU rules

Apple has formally contested moves by the European Commission, which is considering classifying its Apple Ads and Apple Maps services as “gatekeepers” under the Digital Markets Act (DMA). This designation would subject them to far stricter regulation.

The Commission will review the tech firm’s own filings for up to 45 working days before deciding whether either service will be designated a gatekeeper. If so, the firm would have six months to bring the services into compliance.

The EU is checking Apple’s Ads and Maps services for gatekeeper rules

The European Union utilizes the Digital Markets Act to identify companies that act as gatekeepers, controlling essential digital services and potentially blocking smaller businesses or limiting user options. A company must have over 45 million active users each month in the EU and be worth over €75 billion for the DMA to classify it as a gatekeeper. 

The DMA requires gatekeepers to follow strict rules that make it easier for users to switch between services, protect and use people’s data fairly, and give smaller companies fair access to digital tools. The Act ensures that some of the biggest tech companies cannot dictate the apps, services, or tools people use simply because they are dominant.

The European Commission stated that Apple’s own filings indicate that its Ads and Maps services are large and influential enough to impact competition and limit user and business choices, thus making them gatekeepers. The Commission will review Apple’s own filings for up to 45 days to determine whether the two services could unfairly control access to important tools or limit the ability of other companies to reach customers.

Apple’s App Store, iOS, and Safari already have gatekeeper status under the DMA, so adding its Ads and Maps services to the list will force the company to make big changes to its services.

The changes will also affect developers who build apps for Apple’s platforms, as well as competitors who rely on its advertising or mapping services, and users who depend on these services for their daily tasks.

Apple says Ads and Maps are too small and should not follow gatekeeper rules

Despite meeting the numeric thresholds, Apple argues that neither service is dominant enough to justify the gatekeeper label. The tech firm stated that the EU had misinterpreted the numbers and was giving an incorrect impression about the significance and importance of these services.

The company explained that Apple Ads occupies a very small share of the advertising market compared with bigger companies like Google, Meta, Microsoft, TikTok, and X.

The tech company stated that the market is dominated by large competitors with greater control, so simply examining the total number of users or impressions will not reveal the full picture. The tech giant argued that treating Apple Ads as a gatekeeper will make it really difficult for the company to improve its services and offer tools that work best for everyone. 

Apple also said Apple Maps has fewer users than Google Maps and Waze, which people use every day for directions, navigation, travelling, and finding local businesses. Many people in Europe prefer to choose other mapping apps, so the firm said the DMA is intended for services with a broader impact, a significant market share, and the ability to block other companies. 

The iPhone maker said it will continue to defend itself while the European Commission reviews Ads and Maps over the coming weeks. The company will provide additional evidence, explanations, and context to demonstrate why its services don’t meet the requirements set by the DMA. 

The situation highlights how the law is now targeting the goods and services of tech companies that have a significant influence on the market, but were previously overlooked. This debate over Ads and Maps will also influence how the EU applies the DMA to other services in the future.

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