• EU may drop Apple browser probe without a fine.
• Expected to levy fines on Apple and Meta in separate cases.

According to Reuters, the European Commission’s inquiry into Apple’s handling of browser choice on iPhones and iPads is expected wind down, without imposition of a fine. The case, initiated in March 2024 under the Digital Markets Act (DMA), centred on whether Apple’s interface discouraged users from switching to third-party browsers or search engines. Despite months of regulatory scrutiny, Apple is not expected to face a fine in this case.

In separate cases, Apple is being investigated for limiting how developers inform users about external app sources and payment methods, and Meta for offering an ad-free subscription in Europe without a free alternative, held to be an imposition of terms and conditions on users that stipulate use of personal data in breach of the DMA.

The decisions arrive at a sensitive moment for US-EU relations, particularly following remarks from US President Donald Trump threatening tariffs against European countries that penalise American tech companies.

EU regulation shifts the landscape

The Digital Markets Act, which came into effect earlier this year, aims to increase consumer choice and guarantee fair competition in digital markets. It outlines a set of obligations and restrictions for major tech firms, known as “gatekeepers,” with the goal of making room for smaller rivals in areas like browsers, social media platforms, and app stores.

Under the DMA, violations can carry fines of up to 10% of a company’s global annual turnover. Companies like Apple, Meta, Google, and Amazon have all faced heightened regulatory oversight as a result.

Apple began preparing for these changes in January 2024 by modifying its browser choice process. With the release of iOS 17.4 in EU countries, iPhone and iPad users are now prompted to choose from a list of browsers when first launching Safari. The list includes a range of popular options in the region, shown in random order to avoid favouring Apple’s default browser. However, the rollout drew criticism.

Developers of competing browsers, including Chrome and Firefox, argued that the implementation still subtly favoured Safari and limited true competition. They also raised concerns about Apple’s long-standing requirement for all iOS browsers to use its WebKit engine – a restriction that the DMA now prohibits, but which left a lasting impact on how alternative browsers evolved on Apple devices.

Ongoing developer concerns

While Apple has made adjustments – like adding browser subtitles from the App Store and simplifying the selection process – some developers felt the changes didn’t go far enough. Users must still scroll through the entire list before choosing a default, and developers argue that the prompt should appear during device setup, not only after opening Safari.

Jon von Tetzchner, CEO of browser company Vivaldi, said that users should be prompted to select a browser when setting up their device, similar to how Android handles default options. Yet this proposal overlooked the fact that most users upgrading to iOS 17.4 are existing iPhone owners who may not welcome a more involved setup experience.

There’s also debate over whether users notice a meaningful difference between browser engines. While Android users can choose between Chrome, Firefox, Opera, and others with distinct back-end engines, most iPhone users are unaware of what engine powers their browser – especially when WebKit was previously the only option.

However, it seems that the changes Apple has made with regards its Safari browser on iOS have been enough to satisfy regulators.

More changes underway

In an attempt to avoid being fined for its attempts to centralise all application sources and payments through its ecosystem, Apple has opened the door to third-party app stores in the EU and relaxed restrictions on dictating default apps. With iOS 18, Apple further increased options for users to switch core services like messaging and navigation.

The EU looks set to impose a fine in this case, however, at a level that will not be influenced by wider trade tariff imposition, according to the EU Commission.

Looking ahead

While Apple is expected to avoid a fine in the browser investigation, regulators will continue monitoring its compliance on multiple fronts.

Meanwhile, the company still faces potential penalties in other ongoing DMA cases, including its rules for app developers. As the EU moves to enforce a more open digital ecosystem, Apple’s experience may serve as a template – or a cautionary tale – for how large US platforms operate in more rigorous regulatory landscapes.