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Fulvio Sarzana: “With its new powers, Apple threatens high quality as much as 17 billion or a block like TikTok”

“The sanctions are an order of magnitude better than those that Europe has previously been able to impose on Apple and other huge technology corporations, or even on the division or sale of corporate components. A bit like TikTok in the US.” Fulvio Sarzana, one of Italy’s many first digital lawyers, co-authored an e-book (Giuffrè, 2023) on the brand new European digital regulatory packages. And he imagines what might happen with the launch of an antitrust investigation into Apple’s App Store

For years, Europe and the USA have been talking about the possible fragmentation of mass technology. In March 2024, the EU antitrust authority fined Apple PLN 1.8 billion for abusing its dominant position after criticism from Spotify. Why is it completely different now?

“There are many varieties. Now, thanks to the Digital Markets Act, Europe can deliver repeatable high quality every day worth up to €50 million (in the case of Apple, which has a daily turnover of €1 billion). Reaches 17 billion in 12 months. But it won’t end here.

Means what?

“Unlike before, Europe has now included a black register of prohibited conduct in its guidelines. In short, the sanction resulting from an infringement is not discretionary. Additionally, it has established a white register of corrective measures, which gives it much greater intervention powers. If excessive, this will lead to what the United States will have to do with TikTok: give the corporation both, or either dismember elements of the corporation or shut it down in Europe.

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However, Apple closing in Europe remains unthinkable…

«However, an industrial blockade of Apple in Europe is unthinkable if prohibited conduct is detected due to the links between a market gatekeeper company (having good energy in this market, Ndr.) and its component parts, Europe can now put pressure on them to promote the latter.”

Now the European Commission investigation, which appears to have reached a final conclusion, recognizes the truth that builders are forced to pay Apple at all times, regardless of whether they retain or leave the retailer. Could a corporate separation imposed for this reason concern the ownership of the application seller and the important undertaking of the corporation, i.e. the sale of units?

«It’s too early to talk about it, but TikTok can help us see where we’re going. Europe could impose on Apple the entry of European corporations into the capital of the property in question. And thus balance the energy stability. During this time, there may be no abuse of a dominant position.”