The company’s dispute with the European Commission over new technology regulations highlights how efforts to improve competition could unintentionally put users, especially children, at greater risk. Apple is resisting the impact of the EU’s Digital Markets Act, which it says has forced it to reduce key security features on devices used by millions across Europe.
In complying with the Digital Markets Act (DMA), Apple was required to permit third-party app sideloading within the EU. This restriction limits its ability to scan for and block apps containing scams or inappropriate material. According to Apple, this shift has undermined long-standing App Store guidelines aimed at reducing harmful content and preventing financial manipulation. These changes have also sparked a second investigation under the Digital Services Act (DSA).
The DMA compelled Apple to eliminate half of the safety rules it applies globally. This included features designed to protect children from adult content and shield users from financial fraud. Apple reported that it blocked over $2 billion in fraudulent transactions last year, but says continuing this success will be difficult under the new regulations. It also lost the ability to enforce in-app payment protections, including parental approval tools.
Apple maintains that the EU’s push for more app interoperability creates additional risks. For example, requirements to support other payment systems and third-party apps could allow malicious parties to access sensitive information or bypass fraud detection. Apple argues that the EU’s fast-moving regulatory rollout is making the online environment less safe rather than more secure.
Australia’s Competition and Consumer Commission is watching closely, with concerns that similar policy changes could affect Australian users. As the EU undergoes a regulatory review, Apple is calling on the Commission to resolve the gap between promoting competition and maintaining user safety, before further unintended consequences occur.
