Apple’s Geo-Blocking Practices Could Violate EU Rules

The European Commission has informed Apple that its geo-blocking practices, where services are limited or blocked in certain geographical locations, are potentially breaking the law. These practices have been identified on the App Store, Apple Arcade, Music, iTunes Store, Books, and Podcasts.

The Commission, along with the Consumer Protection Cooperation Network, has three main issues relating to Apple’s geo-blocking, which it claims “unlawfully discriminates European consumers based on their place of residence.”

• Firstly, the company reportedly offers different interfaces for its services depending on the registered country of the Apple ID used, but it has made switching to that country difficult.
• The second is that consumers can only use payment methods, such as credit and debit cards, issued in their Apple ID’s registered country, creating challenges for those who relocate or travel within the bloc.
• Thirdly, European users cannot download apps hosted on App Stores in other E.U. countries, which limits their access to region-specific content. This is also important when travelling.

An investigation by the Commission and CPC Network found that these geo-blocking practices might infringe the E.U.’s Geo-blocking Regulation and Services Directive, both of which prevent unnecessary discrimination against those who want to access digital services across borders.

Apple now has a month to respond to these concerns and propose corrective measures, such as removing its geo-blocks. If its response is deemed unsatisfactory, the CPC Network, led by authorities in Belgium, Germany, and Ireland, might take enforcement action. The E.U. could even fine the company up to 4% of their global annual turnover.

In 2023, Google made changes to the geo-blocking of its Play services in response to similar action from the authorities.

Margrethe Vestager, executive vice-president for a Europe Fit for the Digital Age, said in a press release: “We are stepping up the fight against geo-blocking. No company, big or small, should unjustly discriminate customers based on their nationality, place of residence or place of establishment.

SEE: EU Antitrust Leader Margrethe Vestager to Step Down After Losing Support

“Preventing geo-blocking helps consumers access the goods and services they want across Europe and strengthens the functioning and integrity of our Single Market.”

TechRepublic has reached out to Apple for comment.

Apple’s back-and-forth with the EU

The geo-blocking debacle is the latest in a string of regulatory tussles between Apple and the E.U., as the latter works to ensure fair competition and accessibility within digital markets. Just last week, the Commission announced its investigation into whether Apple’s iPadOS operating system complies with the Digital Markets Act.

iPadOS, along with the App Store, Safari, and iOS, is on the list of core platform services that must comply with the DMA’s requirements as it provides “an important gateway for business users to reach end users,” As such, iPadOS users should be able to choose their default web browser, use third-party app stores, explore features with non-Apple accessories such as headphones and smartpens, among other conditions.

Interestingly, macOS is not deemed a core platform service, meaning European Mac owners may be able to access Apple Intelligence when it’s released. Apple has asserted that it will not roll out its AI offering in the E.U. due to “regulatory uncertainties” brought about by the DMA. However, an exception could be made because macOS does not have to comply.

SEE: Apple Must Pay Back €13 Billion in Unpaid Taxes to Ireland, E.U. Court Rules

So far, the Cupertino giant has not quietly relented to the legislation. In January, it said that accessing third-party apps on Apple devices presents security risks, including “malware, fraud and scams, illicit and harmful content.”

But the European Commission has been persistent in its efforts to hold Apple accountable, launching three investigations into DMA compliance in the past year.

In June, the company was charged with violating the DMA for several reasons, including not making it easy enough for developers to steer their customers to purchase options outside the app, which do not financially benefit Apple. It also launched a non-compliance investigation into whether Apple discourages developers from hosting their iOS apps on third-party platforms.

In August, Apple announced it would allow E.U. users to delete pre-installed apps on iOS 18 to comply with the DMA. It also made the “browser choice screen” clearer and expanded several default apps that can be replaced by third-party versions.

Apple must also comply with the Digital Services Act, a set of rules designed to regulate how designated “Very Large Online Platforms” handle privacy, protect their users, and operate transparently.