Apple Faces Major Shift Under EU's Digital Markets Act
Apple and Meta fined by the EU for violating DMA, as Europe's market power pushes Apple towards global regulatory changes.
In recent years, the European Union’s Digital Markets Act (DMA) has flexed its muscles, compelling global giants like Apple to rethink their strategies in an ever-evolving digital landscape. April 2025 marked a significant turn when the EU imposed substantial fines on Apple and Meta for breaching DMA regulations—500 million euros and 200 million euros, respectively. Apple’s violation centered on anti-steering obligations, limiting developers from exploiting alternative payment methods externally to Apple’s ecosystem. It is a reflection of the so-called ‘Brussels Effect’ that ripples throughout global market practices, exemplifying EU’s undeniable influence.
Market Power of the European Union
The EU boasts the largest single market, with a GDP approaching USD 16 trillion and a consumer base of 500 million. This unrivaled market power urges companies to comply with EU standards to secure market entry. As one of the wealthiest consumer pools, the EU’s market can absorb adjustment costs, sustaining the regulatory pressures it generates internationally.
Apple Feeling the Brussels Effect
Apple is among the key gatekeepers required by the DMA to open pathways for other developers. Compliance here means adapting to fairer competitive practices and inclusivity. Reflecting the Brussels Effect, such compliance is becoming a norm, driven by the EU’s substantial market demands and similar regulations in other regions, like South Korea’s antitrust regulations.
The Catalyst for Global Change
Apple’s shift is more than regional—it signals a broader trend. Enforcement of DMA-like policies globally mirrors the Brussels Effect, evident in countries such as Australia and India. These local adaptations may ultimately push Apple to implement uniform standards worldwide, minimizing regional discrepancies and avoiding fragmented strategies.
Adaptations in Apple’s Policies
Apple’s approach now includes options for developers on their platform, from app distribution to allowing web browsers on its OS. Eliminating past exclusivity, such as allowing alternative email and browser options, showcases their regulatory compliance within the EU—a potential precursor to global adaptation.
Economic Implications for Apple
The stakes for withdrawing from the EU market are high. With 22% of global wealth and an affluent consumer base, the EU remains crucial for Apple, contributing significantly to its global profits—USD 28 billion of USD 97 billion. Non-compliance would mean relinquishing this lucrative segment, a move Apple wisely avoids.
In a world where economic borders are porous, the EU’s regulatory stance resonates far and wide, showcasing how market power steers global conduct. The Brussels Effect extends Apple’s compliance beyond Europe, setting a new precedent for international corporate strategy. According to Modern Diplomacy, this strategy will likely become more pervasive as digital landscapes continue to evolve.
