Apple Ordered By EU To End Geo-Blocking On App Store, iTunes And Other Apps

The European Union has directed Apple Inc. (NASDAQ:AAPL) to discontinue geo-blocking on its media services.

What Happened: The European Commission has identified several geo-blocking practices on Apple’s platforms, including the App Store, Apple Arcade, Music, iTunes Store, Books, and Podcasts. These practices involve restricting content based on a user’s geographical location. The Commission has warned of potential enforcement actions by national regulators if Apple does not address these issues, Reuters reported on Tuesday.

European Commissioner Margrethe Vestager has emphasized the EU’s commitment to combating geo-blocking, stating, “No company, big or small, should unjustly discriminate customers based on their nationality, place of residence or place of establishment.”

The EU has given Apple a one-month deadline to propose solutions to the identified geo-blocking practices. Failure to comply could lead to further actions by the EU to ensure fair access to digital content across its member states.

See Also: Meta CEO Mark Zuckerberg Dodges Personal Liability In Child Social Media Addiction Lawsuits: Federal Judge Cites Lack Of Evidence

Why It Matters: This directive is part of the EU’s broader strategy to regulate tech giants and ensure compliance with its digital market rules. In September, the EU’s top court upheld a decision requiring Apple to pay up to 13 billion euros in back taxes to Ireland, highlighting the EU’s firm stance on enforcing its regulations. The court ruled that Apple had received illegal tax benefits from Ireland over two decades, emphasizing the EU’s commitment to fair competition and tax practices.

Additionally, the EU’s NIS 2 cybersecurity directive, which became enforceable in October, mandates companies to enhance their cybersecurity practices or face significant fines. This directive underscores the EU’s focus on ensuring robust cybersecurity measures across its member states. However, inconsistent implementation across countries like Portugal and Bulgaria poses challenges to its success.

Price Action: At the time of writing, Apple was trading at $224.06 on Monday during pre-market, as per Benzinga Pro.

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Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari