European Union antitrust regulators have launched a crucial examination of Apple's advertising and mapping services to determine whether they should face the stringent requirements of the bloc's landmark digital competition rules. This development comes after both Apple Ads and Apple Maps met the key thresholds that could classify them as "gatekeeper" services under the Digital Markets Act (DMA).
What Triggered the EU Investigation
The European Commission confirmed that Apple has formally notified regulators that both Apple Ads and Apple Maps have reached the two critical benchmarks established by the Digital Markets Act. The DMA specifically designates companies as gatekeepers if they provide services with more than 45 million monthly active users and maintain a market capitalization exceeding 75 billion euros (approximately $79 billion).
This isn't Apple's first encounter with the DMA regulations. Two years ago, the tech giant's App Store, iOS operating system, and Safari web browser were already designated as core platform services under the same legislation. The Digital Markets Act represents Europe's comprehensive effort to curb the dominance of major technology corporations and create more competitive digital markets that offer consumers greater choice.
Apple's Defense and Rebuttal Arguments
Apple has responded vigorously to the potential designation, submitting official rebuttals to EU competition authorities last Friday. The Cupertino-based company presented compelling arguments why both services should remain exempt from the DMA's onerous requirements.
Regarding Apple Ads, the company emphasized its relatively minor position in the European Union's online advertising landscape. Apple contends that its advertising service holds minimal market share compared to industry giants like Google, Meta, Microsoft, TikTok, and X (formerly Twitter). The company specifically highlighted that Apple Ads doesn't utilize data from other Apple services or third-party platforms to power its advertising operations.
For Apple Maps, the company pointed to its limited usage within the EU when measured against competing mapping services such as Google Maps and Waze. Apple also argued that Maps lacks critical intermediation functionalities that would enable more direct connections between business users and end users—a key characteristic the DMA targets.
Timeline and Potential Consequences
The European Commission now faces a strict deadline of 45 working days to reach a decision on whether to designate Apple Ads and Apple Maps as gatekeeper services. Should regulators rule against Apple's arguments, the technology giant would then have six months to bring both services into full compliance with the Digital Markets Act's extensive list of requirements.
The DMA's provisions include numerous obligations designed to ensure fair competition, such as requiring gatekeepers to allow third-party interoperability with their services, prohibiting self-preferencing practices, and mandating greater transparency in data usage and business practices.
This investigation represents another significant chapter in the ongoing tension between global technology giants and European regulators determined to create a more level playing field in digital markets. The outcome could have substantial implications for how Apple operates its advertising and mapping services across the European Union's 27 member states.
