EU tech chief Virkkunen schedules video call with Tim Cook

Key Takeaways

• EU Technology Commissioner Henna Virkkunen has scheduled a video call with Apple CEO Tim Cook for Monday
• The European Commission declined to specify what topics would be discussed
• Apple faces ongoing DMA compliance scrutiny and a €1.8 billion fine from March 2024

EU Technology Commissioner Henna Virkkunen will hold a video call with Apple CEO Tim Cook on Monday, according to a European Commission spokesperson. The spokesperson declined to provide any details about the topics on the agenda.

The call comes at a tense moment in EU-Apple relations. Apple remains one of six designated "gatekeepers" under the Digital Markets Act, alongside Google, Meta, Amazon, Microsoft, and ByteDance. The company has clashed repeatedly with Brussels over how it interprets compliance with the bloc's digital rules.

Why is the EU talking to Apple now?

The Commission did not say what prompted the call. But context matters. In March 2024, the EU fined Apple €1.8 billion for anti-competitive App Store practices, specifically for restricting music streaming apps like Spotify from informing users about cheaper subscription options outside the App Store.

Since then, Apple has introduced changes to comply with the Digital Markets Act, but regulators have questioned whether those changes go far enough. The company's 27% "core technology fee" for alternative app stores drew particular criticism. To some observers, the fee looked less like compliance and more like a deterrent.

What does the Digital Markets Act require of Apple?

The DMA, which became enforceable for gatekeepers in March 2024, targets practices that regulators believe give dominant platforms unfair advantages. For Apple, that means allowing alternative app stores on iOS, enabling users to choose default browsers and payment systems, and permitting developers to communicate directly with customers about pricing.

Apple has pushed back. Tim Cook has argued that some DMA provisions could create security vulnerabilities for users. The company frames its walled-garden approach as a feature, not an anti-competitive tactic. EU regulators see it differently.

What are the stakes for Apple?

The financial exposure is significant. Under the DMA, non-compliance can trigger fines of up to 10% of global annual revenue. For Apple, with roughly $400 billion in annual revenue, that ceiling exceeds €40 billion. No company has faced such a penalty yet, but the threat shapes every conversation.

Beyond fines, the regulatory pressure affects Apple's product strategy. The company has historically kept tight control over iOS to protect both user experience and its services revenue. Opening iOS to alternative app stores and payment systems could erode that advantage, particularly in a market of 450 million EU consumers.

Who is Henna Virkkunen?

Virkkunen, a Finnish politician, became EU Technology Commissioner in late 2024. She inherited a portfolio shaped by her predecessor Margrethe Vestager, who built a reputation as Big Tech's most aggressive regulator. Whether Virkkunen will match that intensity remains to be seen, but early signals suggest she intends to hold the line on DMA enforcement.

The decision to schedule a direct call with Cook suggests the Commission wants to resolve disputes at the highest level rather than through extended legal battles. Or it could signal that enforcement actions are imminent and Brussels is offering Apple one more chance to negotiate.

Frequently Asked Questions

What is the Digital Markets Act?

The DMA is an EU regulation that imposes specific obligations on large tech platforms designated as "gatekeepers." It aims to ensure fair competition by preventing dominant platforms from leveraging their position to disadvantage competitors or lock in users.

Why is Apple considered a gatekeeper under the DMA?

Apple controls iOS, the App Store, and Safari browser, all of which act as essential gateways between businesses and consumers in the EU. The DMA targets platforms that serve as unavoidable intermediaries for reaching users.

What could happen if Apple doesn't comply with the DMA?

Non-compliance can result in fines of up to 10% of global annual revenue. For Apple, that could exceed €40 billion. The Commission can also impose structural remedies, potentially forcing changes to how Apple operates its services.

Has Apple changed iOS to comply with the DMA?

Yes, Apple has introduced alternative app store support and other changes in the EU. However, critics argue that fees and restrictions attached to these changes undermine genuine competition.

Source: Tech-Economic Times / ET