Apple Ads and Apple Maps should not be designated under Digital Markets Act, says EU

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Beyond the Gatekeeper: Why Apple Ads and Apple Maps Deserve a Free Pass from the DMA

Brussels, Belgium – In the ongoing debate surrounding the European Union's ambitious Digital Markets Act (DMA), a critical question looms large: which digital services truly warrant the stringent designation of "gatekeeper"? While the DMA aims to foster fairer competition in the digital sphere, a closer examination of Apple's advertising and mapping services suggests that imposing gatekeeper status on them would be a misstep, potentially stifling innovation and overlooking their distinct market positions.

The core of the DMA's intent is to regulate large online platforms that act as crucial intermediaries for businesses to reach consumers. These "gatekeepers" are identified by specific thresholds relating to user numbers, revenue, and their role in connecting buyers and sellers. However, applying this framework to Apple Ads and Apple Maps overlooks the nuanced realities of these services and their place within Apple's broader ecosystem.

Apple Ads: An Ancillary Service, Not a Dominant Gatekeeper

Arguments for designating Apple Ads as a gatekeeper often stem from its integration within the App Store. The premise is that Apple, by controlling access to the App Store, also controls the advertising landscape within it, giving its own ad service an unfair advantage. However, this perspective fails to acknowledge the fundamental nature of Apple Ads: it is primarily an ancillary service designed to support developers and promote apps within Apple's own walled garden.

Unlike the vast, open ad networks operated by companies like Google and Meta, Apple Ads' reach is largely confined to Apple's own platforms – the App Store and Apple News. While this provides developers with a targeted audience, it does not grant Apple the same overarching control over the entire digital advertising ecosystem. The primary purpose of these ads is to drive discovery and engagement within the Apple ecosystem, benefiting both users and developers by helping them find relevant applications.

Furthermore, the competitive landscape for digital advertising is incredibly robust. Businesses have a multitude of advertising channels at their disposal, ranging from social media platforms and search engines to programmatic advertising networks and content marketing. To suggest that Apple Ads, with its limited scope, constitutes a dominant gatekeeper that needs to be reined in by the DMA overlooks the fierce competition and numerous alternatives available to advertisers. Imposing strict DMA regulations on Apple Ads would disproportionately burden a service that is already constrained by its own platform and the broader market.

Apple Maps: A Valuable Tool, Not a Market-Dominating Intermediary

Similarly, the case for designating Apple Maps as a gatekeeper is tenuous. While Apple Maps is a widely used and powerful navigation tool, its primary function is to provide users with location-based information and routing services. It is not primarily an intermediary facilitating transactions between a vast array of third-party businesses and end-users in the same way that a marketplace or an app store does.

Critics might point to businesses that leverage Apple Maps for discoverability. However, this is a function of any mapping service and is essential for businesses operating in the physical world. The DMA's focus is on platforms that act as essential conduits for businesses to reach customers across various digital services, not on essential utility services.

Moreover, Apple Maps operates in a highly competitive market. Google Maps, with its extensive global coverage and integration with other Google services, remains a formidable competitor. Dedicated navigation apps like Waze, and even specialized transit apps, offer alternative solutions for users. Apple Maps' success is rooted in its seamless integration with the Apple ecosystem and its commitment to user privacy, not in its ability to exert undue control over other businesses.

The DMA's intention is to address market power that hinders competition. Apple Ads and Apple Maps, by their very nature and market position, do not exhibit the characteristics of the "gatekeeper" services the DMA is designed to regulate. They are integrated features that enhance the user experience within Apple's ecosystem and offer valuable, but not exclusively dominant, functionalities in their respective fields.

A Call for Nuance and Proportionality

Imposing gatekeeper status on Apple Ads and Apple Maps risks overreach. It could lead to unintended consequences, potentially hindering the continued development and improvement of these valuable services. The DMA should strive for precision, focusing its regulatory power on genuine gatekeepers that demonstrably stifle competition.

Instead of forcing these services into a regulatory framework for which they are ill-suited, the EU should consider the unique roles they play. Apple Ads is a tool for developers within Apple's ecosystem, and Apple Maps is a robust navigation service in a competitive market. Applying the broad brush of the DMA to them risks undermining the Act's core objective: fostering a truly fair and innovative digital landscape, not by stifling useful integrated services, but by addressing those that truly command and abuse market dominance. The focus should remain on services that act as indispensable gateways, not those that are simply valuable components of a user-centric ecosystem.

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