Apple continues to go back and forth with the EU about its regulatory compliance. And in a new document recently released by the company, it announced plans to enable setting default apps for navigation and translation soon. That means users will be able to finally make Google Maps default.
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Tim Cook’s job as CEO covers a number of roles and responsibilities. One of them involves maintaining relationships with political powers. And according to Donald Trump, he and Cook recently had a conversation about the EU’s recent rulings against Apple.
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EU users hoping for good news on the Apple Intelligence front—look away. Apple’s ongoing dispute with EU governing authorities over a variety of issues, including AI, has found its latest story. Per Politico, a new AI pact put forward by the EU has gained prominent signatories like OpenAI, Google, and Microsoft. But Apple is a holdout.
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Apple Intelligence is one of the biggest tentpoles of this fall’s new OS updates. The AI features in iOS 18.1, iPadOS 18.1, and macOS Sequoia will debut only for users with compatible devices set to U.S. English.
However, there’s a big asterisk: users in the EU won’t get Apple Intelligence. No matter their device’s language setting, Apple has said it is blocking AI features in the EU until further notice.
But there’s new evidence that indicates this exclusion won’t apply to all platforms. Instead, Apple Intelligence might be supported in the EU on the Mac only.
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Yesterday we learned that Spotify decided to pass on Apple’s new EU terms that would allow it to use alternative payment methods due to the Core Technology Fee. Instead, it submitted an app update with pricing info and details on how to subscribe outside of the App Store without giving users a link. Now Spotify says Apple has unjustly blocked the update and again “defied the European Commission”.
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After a whirlwind of events, Epic Games says Apple has reinstated their App Store developer account. The move clears the way for Epic to bring its Epic Games Store to the EU, avoiding the App Store structure altogether. The turnaround is somewhat unexpected as Apple seemed to stand by its decision to revoke Epic’s developer account on Wednesday.
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The Digital Markets Act (DMA) legislation could force Apple to open up iPhone to third-party app stores in the EU next year and Setapp says it will be ready if that happens. The company known for its popular app subscription service has officially announced its Setapp mobile app store and is taking applications from developers who would like to join in.
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The European Union is planning a new law to address what it describes as ‘unfair contractual clauses’ following a complaint by Spotify, Deezer and others.
While Apple was not specifically named in the complaint, Spotify considers it unfair that Apple takes a 15% cut of in-app subscription purchases, arguing that this makes it less competitive against Apple Music …
Apple, which was accused by the Italian government of failing to declare more than $1.3B of income when paying corporation tax in the country, has now agreed to pay the full €318M ($347M) claimed by the Italian tax office. The company has 16 Apple Stores in Italy.
Apple was accused of funnelling profits from Italian sales through its Irish subsidiary in order to benefit from the lower tax rate the company had agreed there. (Those tax arrangements are the subject of a separate EU investigation.)
La Repubblica (via The Local) reports Apple Italia was listed as a “consultant” for Apple Ireland, enabling the company to book profits through Ireland, paying just 2.5% tax under the terms of an agreement said to have first been reached with Steve Jobs back in the 1980s …
Europe is an odd place to live. In some respects, it acts like one big country (you can drive across it without ever seeing a border or showing a passport), while in other ways it is very definitely individual countries – like paying roaming charges outside your own country for calls, text messages and data.
We’ve been promised an end to roaming charges for what feels like forever, and the good news is that after years of discussion and debate, the European Union finally agreed to a date. The bad news is that the date isn’t until June 15th 2017.
It means that from 15 June 2017 you can use your mobile device when travelling in the EU paying the same prices as at home (domestic prices). For instance, if you pay for a monthly volume of minutes, SMS and data in your country, any voice call, SMS and data session you make while travelling abroad in the EU will be deducted from that volume as if you were at home, with no extra charges. This means the end of roaming charges as Europeans experience them today in their daily life.
The EU has gradually imposed caps on roaming charges, and the current ones of €0.19/minute for calls and €0.06 per text message aren’t too bad, but €0.20/MB for data is the killer, making it easy to rack up a hefty bill with perfectly normal use of a smartphone in other European countries.
The EU has also agreed to net neutrality rules, though watered down with exceptions for ‘innovative’ services that require higher than usual bandwidth – like Netflix. The EU says that these services can be prioritized so long as this doesn’t harm other services, but as everyone would otherwise get the fastest speed for everything, this provision doesn’t appear to have any real meaning.
Irish Examiner got an inside look at Apple’s EU headquarters in Cork along with some interviews with employees there. The campus holds around 4,000 Apple employees that the report points out span across support services, distribution, mapping and manufacturing.
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New data from Kantar Worldpanel ComTech shows that smartphone users ditching Android devices in recent months helped drive iOS growth across the EU. The data tracked the EU’s biggest markets in 1Q15— Great Britain, Germany, France, Italy, and Spain— and shows iOS grew 1.8 percentage points from last year to 20.3% market share this year. That includes around 32.4% of new Apple customers switching from an Android device, according to the report, while Android lost 3.1 percentage points during the quarter:
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Last week, we reported on a flaw with the EU’s new no-questions-asked 14-day refund policy that meant customers could effectively get paid apps for free, as refunding the app does not delete it from customers’ devices.
In response, Apple has adjusted its App Store purchases slightly for customers who have an excessive number of refunds on file. This means people with a track record of refunding purchase effectively lose the right to refund their purchase.
A week ago, Apple introduced 14-day no-questions-asked refunds in the EU for iTunes Store and App Store content. This means that, without the need for a reason, any Apple customer in Europe can get their money back for (primarily) app purchases in 5-7 days time. That’s how it is described, at least.
This opens up some possibilities for abuse. For instance, if you complete a game within two weeks, then you can get your money back and end up paying nothing. As a developer, I tested this out myself. It turns out there is an even bigger problem. At least, right now, when the refund is processed, the app continues to work. You get the app for free, forever.
Apple has recently introduced a new 14-day no questions asked return policy for iTunes, App Store and iBooks purchases in Europe including the UK, Germany, Italy, France, and many other EU countries.
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Before the Apple and Beats marriage can really be official, the two companies must first gain regulatory approval from various governing bodies where the companies conduct business. Apple included the following expectation in its official press release announcing the deal: Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.
For Apple, having regulatory approval and closing the transaction by the end of fiscal Q4 means it expects everything to be in order by the end of September. According to a Reuters report, regulators in the European Union will announce their decision on the deal by July 30th next month.
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Following a report yesterday that the European Commission was about to launch a formal investigation into Apple’s tax practices in Ireland, the EU has now officially announced the investigation at a press conference. Bloomberg reports that the investigation will include not just Apple, but also Starbucks and Fiat Finance & Trade SA and will look at “whether the tax deals in Ireland, the Netherlands and Luxembourg are illegal state aid.”
“Special secret deals should be outlawed across the EU,” Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said in an e-mailed statement. “All tax breaks and reliefs should be openly available for qualifying businesses.”
“We need to fight against aggressive tax planning,” Joaquin Almunia, the EU’s competition commissioner, said at a press conference in Brussels. He said it’s “still too soon to anticipate” possible recovery if the EU finds the tax rulings to be illegal.
Apple responded with a statement to Bloomberg following the news claiming that it “pays every euro of every tax that we owe” and that it “received no selective treatment from Irish officials.” Apple’s full statement is below:
“Apple pays every euro of every tax that we owe,” the company said in an e-mailed statement. “We have received no selective treatment from Irish officials. Apple is subject to the same tax laws as scores of other international companies doing business in Ireland.”
Apple last year faced a U.S. Senate hearing on its offshore tax practices in which it denied taking advantage of any tax loopholes in Ireland. The SEC also closed its own investigation without establishing any wrong-doing in October of last year.
According to a report from Ireland’s RTE.ie, the European Commission has decided to officially launch a formal investigation into Apple’s tax practices in the country (via The Loop). An announcement is expected by EU officials tomorrow:
The European Commission is to open a formal investigation into Apple’s tax arrangements with Ireland… An announcement is expected to be made by Competition Commissioner Joaquin Almunia tomorrow… EU state aid rules are designed to prevent unfair practices, although it is not clear that countries offering favourable tax terms to companies or industries would violate such rules.
Apple last year faced U.S. Senate hearing on its offshore tax practices in which it denied taking advantage of any tax gimmicks or loopholes in Ireland. The EU shortly after launched an investigation into tax agreements with multinational companies in Ireland and number of other EU countries, while government officials in Ireland denied claims of a special 2% tax deal with Apple.
Later, in October of last year, the SEC in the U.S. ultimately closed its own investigation without establishing any wrong-doing on Apple’s part.
While Apple’s Black Friday deals started going live in Australia and elsewhere today with Apple Store Gift Cards in place of traditional discounts, it appears Apple will be offering discounts and not gift cards in at least some countries. The UK, France, Germany and other European Apple Online Stores have now started posting Black Friday promotions with discounts on iPads, MacBooks, iPods, Apple TV, and many accessories.
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Reuters reports that Samsung is currently in preliminary discussions with EU regulators regarding a possible settlement related to charges that it abused its market dominance by blocking Apple from fairly using its essential patents in various ongoing patent disputes:
The talks came after the European Commission, which acts as EU competition regulator, told Samsung in December that it was acting unfairly by seeking injunctions against Apple over use of the essential patents.
“Samsung has been involved in settlement discussions for several months now. Samsung wants to settle,” said one of the sources, who declined to be identified because of the sensitivity of the matter.
If Samsung does settle in the case, it could avoid as much as $17.3 billion in fines. However, it would presumably have to agree to license its essential patents on fair terms, which could have an impact on current cases related to the European Union’s 3G UMTS standard.
Update 2: The changes appear to be EU wide as pictured above.
Update: Apple updated its warranty policy in France and Germany too. (Thanks @settebit)
Belgian consumer groups have been following the move of Italian regulators in recent months to push Apple for changes to its warranty programs in order to clarify rules regarding a statutory warranty enforced by EU law that requires companies to make sure products are free from defects for two years. It isn’t the only other nation pushing for changes to warranties, consumers groups in at least Belgium, Germany, Luxembourg, and Portugal had also filed lawsuits against Apple over its AppleCare and warranty practices. Now, Dutch-language a-n-v.be reports Apple has tweaked its online warranty program in Belgium to meet EU law.
The change in the online warranties tweaks the wording of Apple’s 1-year warranty for free repair and replacements to clarify the 2 year statutory warranty, much the same as what happened in Italy.
Apple published a document on its website highlighting the changes.
In the midst of the U.S. government’s interest in Apple and other large multinationals that “avoid” paying taxes in the U.S. or repatriating funds stored abroad, RudeBaguette.com notes that the French society of authors, composers, and music publishers (SACEM) has announced that Apple owes around 5 million euros in unpaid taxes.
The funds apparently come from unpaid royalties on iPad sales for 2011 that France and other EU countries, such as Germany, collect for devices capable of transferring and displaying copyrighted material:
To give a bit of a background, the copie privée is a tax in several countries including France & Germany that is applied to all digital devices that can transfer, read, or otherwise make use of copyrighted material. The tax goes to the SACEM, which then takes the lump sum of all the taxes collected and deals them out to authors, creators, producers, actors, etc. accordingly… the problem here isn’t so much the tax, but that Apple actually charged the consumers this tax, and didn’t pay it out to the SACEM.
The news comes as reports claim France is beginning to crack down on tax schemes of large companies with plans to force Apple, Google, and others to disclose details of foreign business activities and tax practices:
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From Apple’s Privacy Policy
Bloomberg reports that the Berlin Regional Court in Germany has told Apple to change its policies for managing customer’s data on its website after ruling that Apple’s terms for data use go against German laws. According to a statement posted by a German consumer group Verbraucherzentrale Bundesverband (VSBV), the courts have ruled that Apple cannot request “global consent” for use of a customer’s data” without informing the user of where and how the data will be used. It will also no longer be able to use German users’ data to “promote location-based services and products” or deliver the data to third-parties for advertising purposes:
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As if we needed someone to tell us that the ongoing patent lawsuits between Apple and Motorola in Germany were getting a little out of control… Today the European Commission has finally stepped up calling Motorola’s enforcement of an injunction against Apple with mobile standard essential patents “abuse of a dominant position prohibited by EU antitrust rules.” The EU Commission, however, does note that the statement of objections sent to Motorola does not reflect the final outcome of its investigation into its use of standard essential patents (SEPs):
The Motorola Mobility SEPs in question relate to the European Telecommunications Standardisation Institute’s (ETSI) GPRS standard, part of the GSM standard, which is a key industry standard for mobile and wireless communications. When this standard was adopted in Europe, Motorola Mobility gave a commitment that it would license the patents which it had declared essential to the standard on FRAND terms. Nevertheless, Motorola Mobility sought an injunction against Apple in Germany on the basis of a GPRS SEP and, after the injunction was granted, went on to enforce it, even when Apple had declared that it would be willing to be bound by a determination of the FRAND royalties by the German court.
The EU Commission essentially states that Apple should be able to license the technology under fair, reasonable and non-discriminatory terms decided by a third-party, and that Motorola’s approach with its latest injunction could “distort licensing negotiations and impose unjustified licensing terms.” Back in February of 2012, Apple was for a short while forced to remove all 3G devices from its online store in Germany following the injunction, and at the time Apple noted that “Motorola repeatedly refuses to license this patent to Apple on reasonable terms, despite having declared it an industry standard patent seven years ago.”
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