Frostbite: the DMA survives its first hard winter
As the saying goes, there are decades where nothing happens and weeks where decades happen. Trump and the DMA is in the headlines. Since Donald Trump returned to the White House, the pace of change has been extraordinary, especially in the app economy.
This month, the EU will celebrate the one year anniversary of its flagship digital antitrust legislation, the Digital Markets Act (DMA). Designed to break up the monopolies enjoyed by the likes of Apple, Google, Amazon, Meta, and others, it’s allowed disrupters and smaller platforms to flourish. But now, with Trump threatening to retaliate against Europe for penalizing these US giants, all this is at risk—or so it seems. As I detail below, in February the EU took a tough stance on threats emanating from Washington. Indeed, as these headlines demonstrate, the crackdown on Silicon Valley is as fierce as ever. Let’s take a look.
The Apprentice: Trump learns the hard way
The big news in February was that, after months of hot air, the 47th US President finally made good on his threats. On February 22, Trump signed a memorandum promising to defend US companies against the “extortion” of the DMA—and its analogs in non-EU nations—ordering the US Tax Representative to review its effects on American businesses. Subsequently, the US House Judiciary asked the EU to explain how fair the DMA is on US companies.
None of this is surprising. Earlier in February, a bellicose US Vice President JD Vance warned that this would happen. Despite this, Europe isn’t bowing to pressure. Prior to Trump’s announcement, the EU insisted that it is “fully committed” to DMA enforcement. What’s more, on top of defending DMA fines, EU chiefs are refusing to delay Apple’s antitrust investigation too.
For anyone working in the app economy on this side of the pond, things are… unsettled. But the EU’s tough stance is encouraging. Ultimately, this is a battle worth fighting, and one that’s immensely reasonable. Even in the US, Google is fighting a second antitrust case, and is waiting to find out the penalty of the first. Indeed, as BNN Bloomberg suggests, things aren’t looking much better for the other big Silicon Valley players there either. As such, it’s only right that the EU holds US companies to the same standards.
Apple turns sour
Dark clouds are gathering over Apple’s headquarters in California. After being forced, under DMA rules, to allow third party app stores on iOS, it has now had to allow the first porn app onto iOS: Hot Tub, accessible via AltStore PAL.
Since the app allegedly doesn’t have age restrictions, the iPhone manufacturer is justifiably very unhappy about this development. “We are deeply concerned about the safety risks that hardcore porn apps of this type create for EU users, especially kids,” Apple said.
Subsequently, Epic CEO Tim Sweeney, whose company has invested in Alt Store, fired back at Apple, criticising its monopolistic practices. “[W]hen Apple are allowed to be the gatekeeper of competing apps and stores, they grossly misuse that power to disadvantage competition,” he said.
Who’s right? Maybe they’re both wrong. While porn apps without age restrictions shouldn’t be allowed anywhere, there are ways of policing these things without e.g. imposing costly developer fees and blocking third party app stores—both of which were the case on iOS prior to the DMA.
Elsewhere this month, Apple’s drama continued. First, a German MEP demanded that the DMA’s rules should be applied to Apple’s Cloud and AI services. Then Spotify claimed that Apple still isn’t DMA-compliant. Then China launched an investigation into the company over its developer fees. And finally, the UK government is—worryingly—demanding access to iOS user data. So overall, a mixed bag for Apple. And none of it good.
Google’s judgement day arrives
While writing this month’s blog, I came across a typically provocative headline suggesting that the DMA has been an “utter failure”. Well, if that’s the case, then I’d like to see what constitutes a success. Since it was launched almost a year ago, the DMA has made history over and over again—and February was no exception. As Reuters reported, Google is now set to be fined for breaching the DMA’s rules as part of a landmark judgement.
Since last March, Google has been under investigation in the EU for favoring its vertical search engines (e.g. Google Shopping, Google Flights, and Google Hotels) over rivals, thereby discriminating against third-party services. And as the New York Post reports, although the EU competition watchdog has yet to comment, the fine is likely, as per the DMA’s rules, to be up to 10% of Google’s global revenue.
Change doesn’t happen overnight—and neither do EU investigations. But 12 months on from the DMA’s launch, and it feels things are indeed changing for the app economy. Indeed, watching these videos from the Pocket Gamer conference in London in January, in which several gaming CEOs celebrated the DMA’s impact, only confirms that we’re headed in the right direction.
Once again, that’s all from me. I’ll be back next month to celebrate the DMA’s first birthday!
—Robert.
Follow Robert Wildner and AVOW on LinkedIn for more mobile industry news and updates! Since 2023, AVOW CEO and Co-Founder Robert Wildner has been closely tracking the developments of the Digital Markets Act, analyzing its impact on app developers, mobile advertisers, and tech giants navigating regulatory shifts. He writes about the DMA every month, sharing in-depth insights and analysis exclusively on LinkedIn. Don’t miss his latest updates on how the DMA is shaping the future of the mobile industry!
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February 2025’s DMA Digest in Review
- Trump and the DMA remain at the forefront as tensions between the U.S. and EU escalate. Despite pressure from Washington, European regulators continue to stand their ground, reaffirming their commitment to enforcing the DMA and pushing back against claims of unfair treatment of U.S. tech giants.
- Apple faces mounting challenges, from DMA compliance to global regulatory scrutiny. The introduction of third-party app stores has led to unexpected controversies, while investigations in China, the UK, and the EU threaten to shake up Apple’s business model even further. With ongoing antitrust concerns and new demands from policymakers, the company is under more pressure than ever.
- Google’s reckoning approaches, with reports suggesting a major fine is imminent for breaching DMA regulations. The EU’s investigation into Google’s preferential treatment of its own services is set to deliver one of the most significant rulings in the DMA’s short history, sending a clear message to Silicon Valley.
- One year on, the DMA is reshaping the app economy, with industry leaders acknowledging its growing impact. While critics question its effectiveness, enforcement is ramping up, and companies are beginning to feel the consequences of non-compliance. As the regulatory landscape continues to evolve, the coming months will be crucial in determining how far the DMA’s influence will reach.
What About the DMA So Far?
Since its introduction in 2024, the Digital Markets Act (DMA) has been at the center of a global regulatory shift, aiming to curb monopolistic practices by Big Tech. Over the past year, the DMA has forced changes that once seemed impossible—Apple opening iOS to third-party app stores, Google facing antitrust fines, and Meta adjusting its advertising model to comply with EU standards.
While some argue that enforcement hasn’t gone far enough, the increasing number of investigations and penalties signal that the DMA is more than just a symbolic gesture. With several major rulings expected in 2025, this year will be crucial in determining whether the DMA can fundamentally reshape the digital economy or if tech giants will find ways to work around its restrictions.