Wednesday, June 11, 2025
New Apple Games App: Guaranteed Un-Installable in the EU
Apple has announced that its new Games app will be preinstalled on everyone’s home screen with iOS 26 and iPadOS 26. For those rightly concerned about the extent to which the DMA is future-proof, there is some reassurance: under the DMA, this app will need to be uninstallable in the EU. The Commission has only recently closed a non-compliance proceeding against Apple, after the company brought itself into compliance by making numerous previously non-removable apps uninstallable. It is therefore highly unlikely that Apple will attempt to test the DMA boundaries again with the Games app. Right?
Tuesday, June 10, 2025
Monday, June 09, 2025
Friday, June 06, 2025
Biting into better interoperability? First thoughts on Apple 6(7) specification decision regarding "process" (with a coda on the other specification decision)
Disclosure: for 7 months covering Maria Luisa (Isa) Stasi’s leave, I had the honour of working with Article 19 and contributed to a civil society’s joint submission for the public consultation on this very decision. Once Isa returned (January 2025) I resumed my full-time research activities. That said, mine will be a fresh look: no hard feelings towards the Commission for having paid rather selective attention to the observations submitted.
There is much to unpack. Decision here.
The first thing to note is that the decision is limited to specifying Apple’s implementation measures with respect to the process for requesting interoperability concerning existing iOS/iPadOS features. This is a form of guidance that Apple would, by all appearances, have gladly done without, but which the EU co-legislators expressly provided for in Article 8(2) of the DMA. The DMA sets a strict deadline: the implementing act specifying the measures must be adopted within six months of the opening of proceedings. This timing is absolutely essential to prevent the process from becoming a strategy for deferring compliance ad Kalendas Graecas. Much like those in civil society, though without taking into account the stark inequality of resources, Apple was required to respond promptly, and to sacrifice part of its Christmas holidays to the case.
Now imagine, dear Wavesblog Reader, that you’re an app developer (yes, the one from the painting) who relies on iOS/iPadOS to access your users, reading and trying to make sense of the scope of Article 6(7) of the DMA, just as the Commission does, at some length, across 54 paragraphs (41 to 95). Each of the now numerous DMA commentaries will, in future, inevitably have to begin with this detailed analysis, on which judges, too, will soon be called to rule.
The unquestionable starting point is that Article 6(7) refers to the “same hardware and software features” as are available or used by the gatekeeper’s services or hardware. Thus, same feature (the what) and “equally effective interoperability” (the how) in terms of both the effectiveness of the interoperability solution and the conditions under which that solution is made available to you, "by comparison to how the gatekeeper implements interoperability and access to hardware and software features for its own services and hardware". Among the properties of the feature itself that you might care particularly about, the Commission lists by way of example the end user journey, ease of use, device and software set-up, data transmission speed, and energy consumption. According to the Commission, the EU legislator recognised that while the feature must be the same for both you and Apple (e.g., data transmission speed), the implementation of interoperability, though not necessarily identical, must be equally effective to that enjoyed by Apple. Clearly, an implementation of this obligation that grants you only a degraded feature (for instance, slower data transmission than that enjoyed by Apple), cannot be considered compliant with Article 6(7), whose purpose is to allow you to offer your services and hardware, and to innovate, “on an equal footing with the gatekeeper.” Contestability and fairness, those Castor and Pollux of the DMA temple, must be duly honoured.
Apple was required to comply with Article 6(7), as well as the others DMA obligations, as of 7 March 2024. This, evidently, has not occurred as envisaged, as you, dear app developer, may well have noticed. Nor has it escaped the Commission, which has been closely monitoring the situation, issuing a string of RFIs along the way. Perhaps you received one yourself, an RFI from the Commission asking, for instance, about your experience filing one of the interoperability requests with Apple after DMA compliance date , or about the difficulties you faced in trying to identify the features Apple uses for its own services and hardware.To deal with this situation, in addition to the possibility of finding a plain vanilla infringement, the EU legislator has introduced an entirely novel instrument: the specification proceeding. Article 8 of the DMA confers upon the Commission the power to unilaterally determine the specific measures required for compliance, distinguishing the specification process from a commitment procedure, which is centred on making the company’s own proposals binding.
This also means that, in empowering the Commission to specify the measures necessary to ensure effective compliance with the legislative provisions, the EU legislator made clear that the Commission is under no obligation to adhere to the gatekeeper’s own, inevitably self-serving, interpretation of its compliance duties. Apple’s first (2024) and the second (2025) compliance reports stated, in concrete terms, what it considered to be the most favourable interpretation of Article 6(7): an approach based on request-based interoperability. As regards solely the features existing on the date of adoption of its decision, the Commission considers that such an interoperability request-based process may be deemed compliant with the DMA, provided the conditions laid down in its Decision are fully met. As for new features released after the adoption of the Decision, Apple is expected to adopt by default a proactive approach to compliance and interoperability by design, as envisaged in Recital 65 of the DMA. The decision, in what is referred to as an Annex, sets out the specific measures Apple is required to implement, along with the corresponding timelines. Within two years, the Commission will assess the effectiveness and impact of these measures. Moreover, with regard to new features, excluded from the scope of the current specification, the Commission will take into account the compliance actions taken by Apple in determining whether its approach aligns with the proactive, interoperability-by-design standard foreseen in the DMA (see Article 1).
Much could be debated as to whether the request-based process specified and prescribed by the Commission might have been further improved, and here I note once again (see disclosure) that civil society, developers, and researchers had put forward constructive suggestions, only partially reflected in the final outcome. What now most draws my researcher's initial attention, and would warrant deeper reflection beyond this blog post, is the exchange, clearly emerging from the decision, between the Commission and Apple over the meaning and practical implications of the interoperability by design obligation. Compliance by design under the DMA had already caught my attention nearly two years ago, in what now feels like the prehistory of DMA enforcement.
In paragraph 104 of the Decision, the Commission recalls that gatekeepers should ensure compliance with Article 6(7) of Regulation (EU) 2022/1925 "by design and free of charge." This formulation encapsulates two core aspects of the provision. First, interoperability must not be treated as an afterthought or a concession granted upon pressing request, but built into the architecture of the regulated operating systems at the outset. Second, a system that imposes high transaction costs on developers to obtain interoperability can hardly be described as free of charge. In fact, this is not confined to the absence of explicit fees; it extends to ensuring that access is not undermined by burdensome procedures, opaque criteria, built-in friction, unjustified delays, etc. But then, quite justifiably, you may ask yourself, dear developer: how can the principle of interoperability by design possibly be reconciled with Apple's request-based process endorsed and further disciplined by the Commission? After all, if interoperability must be embedded by design, shouldn’t it be somewhat automatic, largely transparent, and proactively enabled, rather than contingent on your ability to navigate a request system, identify shadowy features, and patiently wait for the gatekeeper’s response?
You may find some reassurance in reading paragraph 105, which suggests that the Commission may, in fact, share many of your views and concerns. It is worth quoting in full:
"Unlike proactive approaches such as interoperability by design, a request-based system presents important limitations and difficulties for third parties. In particular, it causes delays due to the need to process requests and implement solutions, and it leads to associated transaction costs. It requires third parties to (attempt to) recognise the hardware and software features that may be available to or used by the gatekeeper. It may also necessitate the disclosure of third parties’ confidential information to the gatekeeper. Moreover, it risks enabling the gatekeeper to maintain control over the request-based process and its outcome (i.e. whether, when and how interoperability will be provided), in a context where the gatekeeper may have incentives to refuse, delay, or restrict the provision of interoperability to competitors or potential competitors. Overall, in a context characterised by information asymmetry and imbalance in bargaining power, a request-based process may allow the gatekeeper to undermine the effectiveness of Article 6(7) of Regulation (EU) 2022/1925, and the ability of third parties to innovate."
Nonetheless, the request-based approach adopted by Apple is endorsed by the Commission, albeit subject to the (substantial) adjustments set out in Annex I. Why? Apple, the Commission notes in paragraph 107, had not envisaged third party interoperability in the original design of the operating system and/or of the features prior to the entry into force of Article 6(7). Faced with this legacy design, the Commission appears to have accepted that a request-based mechanism could serve as a somewhat transitional form of compliance, provided it fully complies with all the conditions set out in Annex I. Subject to the conditions it lays down, the Commission considers that it has addressed the risks previously identified in the rather long paragraph quoted above, and thereby ensured the “respect of third parties’ right to interoperability” (para. 107).
While the Commission confirms that, with regard to existing features, there is no obligation of interoperability by design, it nevertheless notes that the measures specified in the Decision make compliance with Article 6(7) “more automatic” and, in this sense, provide a “pathway” towards interoperability by design. Instead, when it comes to new features, the Commission makes clear that interoperability by design should be persued by Apple (para. 110).
If, however, we turn to interoperability concerning specific features related to connected physical devices, the situation looks entirely different. For any feature covered by "the other" Article 6(7) specification decision, the request-based process is bypassed altogether: Apple is required to implement the prescribed substantive measures within the timeframes set out by the Commission. Some of these features, the Commission notes, could already be included in the forthcoming iOS 19, currently being unveiled by Apple as I write. Connected physical devices range from payment cards to cars, insofar as they either transmit or receive data. Interoperability with regard to connected physical devices is of substantial economic importance. As Apple itself acknowledges, "most iOS devices do—at some point—connect to a physical device within the EU." What the Commission does in this second Decision is provide Apple with detailed guidance, spelling out the exact interoperability solutions required for specific features, aspects of their technical implementation, and the modalities of access that must be made available to third parties.
At this point, the relationship between the two Decisions, and indeed the overall picture, becomes more intelligible: under the DMA, effective interoperability is understood as something that develops over time, evolving alongside, indeed, accompanying, technological change. To take this obligation seriously dans la longue durée, Apple must first establish a meaningful channel of communication and cooperation with developers requesting interoperability. The Commission considers that, if properly implemented with the safeguards it has specified, even a request-based system can serve this function. In such a framework, developers may articulate specific interoperability needs which Apple is then required to meet. Should Apple fail to do so in accordance with the DMA, the Commission may subsequently intervene, either through a further specification decision or, where appropriate, by initiating an infringement procedure. In this sense, the request-based system outlines a pathway toward interoperability by design, one in which, over time, it should make little sense for Apple to maintain separate interoperability solutions: one for its own products and services, and another for third parties.
In the case of the connectivity features covered by the second Decision, however, concerns about the lack of effective interoperability have already materialised. These are “borne out in requests made by third parties via Apple’s Interoperability Request Portal and submissions during the administrative proceedings and the public consultation,” as well as “by Apple’s submissions outlining possible interoperability solutions and its proposed implementation deadlines” (para. 18). The purpose of the second specification decision is therefore “to swiftly provide effective interoperability solutions to the market” (para. 19), and in the event of any conflict, it prevails over the process decision (para.20) (on this last point, a legal mind cannot help but glimpse vast and fertile fields for further musings).
These are merely initial reflections, but one must concede that the future of interoperability in the EU, as it is now taking shape, is both stimulating encouraging. You, dear Developer, in the EU and beyond, so long as you serve EU users, should be a little more hopeful than before. This is at any rate true for someone who has long followed the subject from a competition policy perspective, and who can only welcome the emergence of promising developments not only under the DMA, but even on the more traditional front governed by the stricter contours of Article 102.There will be ample opportunity to write more on this, and I very much look forward to discussing it further during an upcoming webinar, one that will also bring in perspectives and experiences from other jurisdictions.
Thursday, June 05, 2025
Wednesday, June 04, 2025
Tuesday, June 03, 2025
Digital Platform Regulation: Making Markets Work for People
F. Scott Morton, here.
[Most of them, previously published Bruegel policy papers you might have read already].
PRIVACY WITHOUT PAYING: ALTERNATIVES TO META’S SURVEILLANCE ADVERTISING MODELS
Open Rights Group, here.
Big Tech monopoly maintenance: Is a ‘go and sin no more’ remedy sufficient?
The TechTank Podcast, here.
Sunday, June 01, 2025
Friday, May 30, 2025
Thursday, May 29, 2025
The Complex Geopolitics of Digital Regulation: The Three Body Problem
Compass Lexicon, here.
Asked on LinkedIn whether they might have anything to disclose. Economic consultants write to favour their Clients, normally. It's their business model, nothing exotic here. However, I think Wavesblog's Readers should know who the beneficiaries of this specific article might be in particular - before they even start reading it.
Now we know, kind answer: "Thank you. The paper includes disclosures in the last page. This paper has not been funded by or reviewed by any third party. It does not advocate for more or less regulation. It merely describes the current geopolitical debate and the challenges it involves for all of us. Comments welcomed"
This is the disclosure, that should be on the first page IMHO:
"Conflicts of Interest Declaration. This paper has not been commissioned
or funded by any party, and no party had the right to review the paper prior
to its circulation. Jorge Padilla and Vanessa Zhang are solely compensated
by Compass Lexecon, an economic consultancy. As consultants, they have
represented many companies over the years, on both the complainant and
defendant side. They hold no paid or unpaid position as officer, director,
or board member of non-profit organizations or profit-making entities
whose policy positions, goals, or financial interests relate to the article. The
list of their clients can be found at www.compasslexecon.com/profession-
als. This paper does not necessarily represent the views of Compass Lex-
econ or its clients"
The way I read it:
They have many clients, but nobody (directly?) commissioned nor funded the paper. No client had the right to review the paper prior to its circulation.
Wednesday, May 28, 2025
Agendas of the DMA Compliance Workshops available
EC, here.
In the adaptation part of this draft paper, which some friendly economists seem to like in particular, I express some mild reservations on the workshops - still, much better than nothing!
Where is the agentic helper registering for me to all of them?
Done!
Interestingly, Meta is the last invitee, no agenda yet available.
"And so we are now to a point where these larger companies are basically denying consumers the fruit of this incredible innovation"
Luther Lowe Unbound, FT here.
Nothing to disclose: I never had the chance to talk to him but I admire his grit.
German privacy watchdog scraps plans to stop Meta AI training on personal data
Euractiv, here.
[Such a pity the German Court didn't have the 5(2) Meta non-compliance decision to reflect on before deciding]
re:publica 25: Solving Search for the AI age - the future of an ever-evolving product
Video here.
Google was one of the sponsors (Partners) at re:publica.
(Sell ads...Nothing more ;-)?)
Also quite interesting as it shows that Google hasn't been innovating much since becoming a monopolist, actually. Very busy building moats instead (see antitrust cases)?
Agentic seems really the end game, at this point.
Interesting slip of the tongue: "Given the success of AI Overviews, we found that...The success of the AI Overviews and the product market fit that it was finding" - the impression is that the AI push is now the must, figuring out how to repair/rediscover the web (web that AI buries alive) is for later. Providing incentives here and there to keep the ecosystem alive?
Will people continue using Google Search in the future? It'll depend on the competition on the merits, if others have the chance to emerge and be selected (for a DMA-related reflection see this draft paper I really need to finalize now but waiting for the closing arguments from the other side of the pond).
GenZ interviewer: not using Google Search much, rather ChatGPT or TikTok.
Honest answer "I clearly have to find a way to get you to start using Google Search more..." - great, as long as it is by competing on the merits, not by building moats...
UPDATE 5 June 2025:
Would running such adds fall under "competing on the merits" measures?
Monday, May 26, 2025
Judge Alsup says he’s leaning to accept fair use by Anthropic. But cautions may change his mind.
ChatGPT is eating the world, here.
Apple 5(4) DMA non-compliance decision: First Impressions
EC, here.
Apple's non-compliance decision at first glance: consistently seeing through the gatekeeper's non-compliance game (without access to damning evidence as in Epic v. Apple). Sending an important message to the others as well. Can't wait to read Meta's 5(2) decision too.
One of the advantages of having (non-captured) regulators is that they get to know their regulated entities pretty well, seeing through smokescreen strategies rather quickly. Like a mum dealing with a child she knows all too well.
Some first impressions
The first notable point is the Commission’s confirmation that every set of business conditions offered by Apple to app developers must permit steering, not only those tied to a particular contractual framework developers can choose from. Non-compliance cannot be remedied by offering an alternative, compliant path. In any event, this was not the case here: all the options offered were non-compliant.
On the "Original Business Terms," the Commission had little difficulty: no form of steering was permitted, as Apple itself acknowledged, referring to the practice almost as a time-honoured tradition, not unlike the Romans venerating their own, largely fabricated, ancestral deeds, lost in the shadowy mists of time.
Another notable point is that, insofar as the Original Business Terms, found to be non-compliant, continued to apply to the New Business Terms, the latter were, by that fact alone, already non-compliant. One might wonder whether Apple’s contract lawyers assumed they had been particularly clever, and that the Commission wouldn’t notice. This is also of interest in that the presence of a non-compliant element taints any part that might otherwise have been compliant, though, as noted above, in this case there was nothing compliant to begin with. That principle, of course, may prove important well beyond the confines of this particular decision.
Proceeding further, what stands out is that Apple’s understanding of a “self-executing” obligation appears to translate into business as usual, without any need to venture into "technical complexity ("“required to ‘allow’ developers to contract with end users within or outside of the app, as it has always done”). Even more reminiscent of clinging to a slippery surface is Apple’s argument that the absence of any security exception in Article 5(4) must mean the EU co-legislators intended to give it carte blanche to impose restrictions on app developers’ ability to steer and conclude steered transactions. Naturally, this is because Apple is solely concerned with the security of its users.
As one would expect in the first non-compliance decision, much turns on the interpretation of what amounts to effective compliance under Article 8(1). Importantly, as I noted in a separate comment on the DMA, though I confess I can no longer recall which 😊, the Regulation makes clear that the measures implemented by the gatekeeper must be effective in achieving the objectives of both the Regulation and the relevant obligations. What matters, then, is not whether steering and steered transactions are "theoretically permitted" by Apple’s terms and conditions, but whether Apple allows in practice, including through contractual or technical means, business users to steer acquired end users. It is difficult to imagine that the DMA could function without requiring technical changes on the part of gatekeepers, or that the co-legislators were unaware of this.
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Unbelievable |
Many are the facets that make up the prism of app developers’ freedom to promote and choose the distribution channel they consider most appropriate for interacting with end users, and the discussion of how Apple sought to limit and effectively nullify that freedom is particularly telling. On a personal note, I still recall my very emotional reaction the first time I read the text of the disclosure sheet shown after a link-out. In contrast, the Commission offers a calm and reasoned discussion thereof. The main points are, first, that the recurrence of the disclosure and, second, its wording are both designed to discourage rather than properly inform the user. This attention to what is actually required for users to exercise the rights guaranteed by the DMA is certainly to be welcomed, unlike Apple’s eagerness to cast itself, uninvited, as the guardian of its users’ privacy, a role which in the EU belongs properly to the national data protection authorities (a role which, it must be said, is however often poorly discharged, and we need noyb and others to step in).
The decision then turns to a detailed discussion of what “free” actually means, and whether one can be free yet still required to pay, and, if so, how much. And although it is admittedly difficult to dispute that the text states quite plainly “free of charge”, Apple is quick to argue that, in fact, it was never meant to be there in the first place, and in any event, it should be read far more narrowly, excluding any application to the "conclusion of contracts." The argument wavers between suggesting a drafting oversight and hinting at a sort of Missverständnis, with the Commission cast in a dark wood of discordant translations. And any alternative reading of the otherwise plain terms “free of charge” would turn Article 5(4) into a convoluted mechanism of price control so elaborate that not even socialism would have dared attempt it (I may be overstating it, but only slightly). In any case, Recital 40 itself makes it clear that the gatekeeper may be remunerated for the "initial acquisition."
And here it is crucial, as the Commission rightly does, not to lose sight of the objectives of the DMA. The contestability of Apple’s App Store is reinforced precisely by reducing app developers’ dependence on it. This crucial step presupposes that those developers have real economic incentives to use alternative distribution channels, which is exactly what the DMA seeks to provide. Those incentives, however, either vanish or are signifacantly reduced if app developers must pay Apple for the privilege of concluding contracts after (free!) steering.
Thus, Apple’s express provision of a “Commission Fee” in its New Business Terms, applying to all transactions completed by end users within seven calendar days of each link-out from the developer’s app, constitutes a clear breach of the obligation under Article 5(4). A Commission Fee structured in this way cannot, in any case, be regarded as remuneration for facilitating the initial acquisition of the end user by the app developers (something the DMA does not, in itself, prohibit). What follows is a lengthy, and arguably borderline ridiculous, explanation of what “initial” is meant to convey, which of course does not mean “forever."
In the course of the relatively straightforward dismantling of Apple’s counterarguments, one is struck once again by its appeal to ancestral tradition, in the form of its pre-DMA business model. As the Commission states in no uncertain terms, defending that business model is no excuse for failing to comply with the DMA. On the contrary, complying with the DMA may well require changing the business model itself. Indeed, there is nothing sacrilegious or unlawful about it. As the Commission seems almost compelled to remind to a company whose market capitalisation surpasses the GDPs of most countries, the "Union legislature is permitted to place such restrictions on an undertaking’s freedom to conduct a business, provided those restrictions are laid down by law, respect the essence of that freedom, and, subject to the principle of proportionality, are necessary and genuinely meet objectives of general interest recognised by the Union or the need to protect the rights and freedoms of others."
Arriving finally at the fitting epilogue of the decision, not the fine, but the cease-and-desist order, the whole matter is dealt with in little more than a single page. Particularly interesting is the comparison with the obligations Apple now faces following its defeat across the Atlantic in the Battle Royale with Epic.
We’ll see in just under a month whether periodic penalty payments will prove necessary.
Update: Apple's statement provided to 9TO5Mac is rather, well, unsurprising:
“There is nothing in the 70-page decision released today that justifies the European Commission’s targeted actions against Apple, which threaten the privacy and security of our users in Europe and force us to give away our technology for free. Their decision and unprecedented fine came after the Commission continuously moved the goalposts on compliance, and repeatedly blocked Apple’s months-long efforts to implement a new solution. The decision is bad for innovation, bad for competition, bad for our products, and bad for users. While we appeal, we’ll continue engaging with the Commission to advocate on behalf of our European customers.”
Also on LinkedIn (not capitulating yet, though)
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Aka " From Digital Feudalism to Digital Sovereignty " - UCL IIPP, blog and video here. First of all, I strongly recommend watching...
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P. Krugman, here. [In 2017 (!) I had the honour of talking about fintech, competition, and the PSD2 to a Brazilian audience - people were...
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P. Samuelson, here.
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D. Baldacci, here.
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Not the usual Competition Commissioner's statement. Whole-of-Commission Approach? EC, here . [Dutch company buying an US company, mind...
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South Korea: Local DMA Bill "likely to be put on hold due to pressure from the TRUMP administration"S. Lee (from LinkedIn), here . "Discovered" by a researcher coming back from vacation? Don't they have civil society active ...
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Article 19 et al., here . Activating the full DMA's potential (Episode XX, still only scratching the surface): "Article 27 Infor...
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Cleary Gottlieb Steen & Hamilton, here.
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TechCrunch, here . The abandoned Adobe/Figma merger? Hats off to the CMA. It deserves a pat on the back, not a muzzle.