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Apple Sounds Alarm Over UK Tech Regulation: Risks to Innovation and User Security

Apple Sounds Alarm Over UK Tech Regulation: Risks to Innovation and User Security

Apple Voices Concern Over UK’s Proposed Tougher Tech Regulations

Apple has expressed strong reservations about the UK Competition and Markets Authority’s (CMA) plans to introduce stricter regulations on technology companies. The tech giant warned that adopting rules similar to those implemented by the European Union could be detrimental both to users and developers in the UK, potentially causing delays in feature releases and innovations.

Concerns Rooted in EU Digital Market Act Experiences

Apple highlighted its experiences with the EU’s Digital Markets Act (DMA), legislation designed to facilitate competition by smaller firms against major tech players. According to Apple, the EU’s approach led to postponed availability of certain features and software enhancements for European users, and the company cautioned that similar outcomes might occur in the UK if the CMA moves forward with comparable measures.

The CMA has proposed regulatory changes aiming to open up the UK mobile ecosystem, which the watchdog describes as effectively dominated by Apple and Google. The CMA’s July investigation found that approximately 90-100% of UK mobile devices operate on platforms controlled by these two firms, constituting a near duopoly in the market. In response, the CMA seeks to require Apple and Google to make specific modifications, such as permitting app developers to direct users to alternative payment systems beyond Apple’s App Store.

Apple’s Statement on Privacy and Innovation

In a recent statement, Apple argued that the proposed CMA reforms would erode the privacy and security protections users currently enjoy and hamper Apple’s ability to innovate. The company contended that the changes would compel it to provide advanced technology to foreign competitors at no cost. Apple also raised concerns about demands for interoperability—that is, allowing third-party developers to exchange data and interact with Apple’s mobile technology—pointing out that under the EU’s interoperability rules, it had received over 100 requests, some from rival firms, for access to sensitive user data, including data even Apple itself cannot access.

Potential Risks Raised by Alternative Payment Systems

Apple further cautioned that allowing app developers to steer users toward rival payment mechanisms could expose users to scams and compromise device security. The company maintains that such changes may create vulnerabilities rather than enhance consumer choice.

CMA Defends UK’s Regulatory Approach

The CMA rejected Apple’s characterisation of the UK’s rules as replicating the EU’s regulatory framework. The authority emphasized that the UK regulations are distinct and are specifically designed to foster innovation and growth among British businesses, including app developers, while ensuring consumers benefit from technological advancements. The CMA stressed its focus on improving interoperability in targeted areas such as digital wallets and wearable devices to enable developers to create new and innovative applications.

In response to Apple’s privacy and security concerns, the CMA assured that promoting competition would not come at the expense of these important protections and that it would carefully consider UK-specific measures to maintain a balance.

International Tech Regulation in Context

Apple’s intervention coincides with broader international tensions over tech regulation, recently highlighted by former US President Donald Trump. In an online post, Trump criticized unspecified countries for regulations he claimed discriminated against American technology companies, warning of possible retaliatory tariffs and restrictions if such policies were not reversed.

Next Steps

The CMA has invited Apple and other stakeholders to respond to its proposals, with a final decision regarding the regulations expected in October. As the UK seeks to balance fostering competition and innovation with user security and company intellectual property rights, the outcome will likely influence the future of the country’s tech sector landscape.

The ongoing dialogue between regulators and tech companies underscores the complex challenges of governing an increasingly digital economy, where consumer interests, business innovation, and competitive fairness must all be carefully weighed.

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