Week Ahead (20 January)

Monday, 20 January – Deadline for feedback on Apple’s compliance with the DMA 

A deadline for comments on Apple’s compliance with the Digital Markets Act (DMA) expires today. Last month, developers, competitors, and stakeholders were invited to submit feedback on Apple’s alternative app store terms and core technology fees introduced last year, a significant step in the ongoing regulatory scrutiny of the US firm. 

The DMA, a flagship regulation targeting big tech firms designated as ‘’gatekeepers’’, including Apple, formally entered into force in March 2024. The purpose of the DMA is to regulate the digital market by preventing big tech companies, referred to as ‘’gatekeepers’’, from abusing their dominant market positions, and opening competition to smaller competitors. To that end, it introduces new responsibilities for tech companies, including sharing data, linking to competitors, and ensuring interoperability with rival apps. Companies with an annual turnover exceeding €7.5 billion, a market capitalisation of over €75 billion, and active monthly users in the EU totalling 45 million fall under these rules.  

Apple is currently the subject of two DMA-related investigations. The first, launched in March 2024, focuses on the company’s App Store policies and the introduction of new fees for developers, with preliminary findings published in June raising significant concerns. The second probe, launched in June 2024, examines Apple’s compliance with DMA interoperability requirements, particularly how its devices integrate with competing products like third-party headsets and smartwatches. Both investigations have a 12-month deadline, with final decisions expected in March and June 2025, respectively. 

In the questionnaire distributed to stakeholders in December, the Commission has asked app developers to provide detailed feedback on how these new terms have impacted their businesses. Developers are also being asked about the financial burden of Apple’s core technology fee and how this compares to costs under preexisting terms. Additionally, the questionnaire seeks clarity on whether developers have had to adjust their business models, pass on costs to consumers, or modify launch strategies to accommodate these changes. 

The feedback collected by today’s deadline will inform the Commission’s next steps, including whether to make a set of draft orders it issued on 18 December legally binding. These orders require Apple to address interoperability issues and ensure that its ecosystem supports third-party software developers. Non-compliance with the DMA could lead to fines of up to 10% of a company’s global revenue, underscoring the high stakes of this investigation. 

Wednesday, 22 January – European Parliament to debate enforcement of digital rulebook amid reports that European Commission will reassess rulebook in order to avoid conflict with Trump administration  

This week, the European Parliament’s plenary debate over the enforcement of the EU’s Digital Services Act. Last Wednesday, MEPs met with Commission Executive Vice-President with responsibility for digital sovereignty, Henna Virkkunen, to discuss the Commission’s future enforcement of the Digital Services Act and other pieces of legislation allegedly targeting US tech firms. The President of the Socialists and Democrats (S&D) Iratxe Garcia argued that the Commission should be ‘’more active’’, ‘’firm’’, and less ‘’ambiguous’’ in its enforcement of the DSA, specifically requesting a more detailed action plan outlining a specific timeline for the conclusion of ongoing investigations. 

Last week’s meeting and this week’s plenary discussion come against the backdrop of a Financial Times report last Tuesday suggesting that the Commission was reassessing its approach when it comes to the enforcement of its digital rulebook on US big tech firms due to fears of trade retaliation by the incoming Trump administration, raising concerns of a potential EU ‘’digital appeasement’’. Attending an event in Brussels on Thursday, executive vice-President in charge of competition, Teresa Ribera, said that the Commission will be able to meet the March deadlines for the finalisation of its ongoing Digital Markets Act probes into Apple, Google, and Meta. 

Overall, the DSA, which entered into force in August 2023, aims to force tech companies to increase advertising transparency, take more responsibility for illegal content on their platforms, including any content promoting terrorist organisations, and improve data access.  The Commission has so far launched probes into Meta, TikTok, AliExpress, and X to assess their compliance with the new rules. These ongoing probes could result in fines of up to 6% of the global revenue of the designated VLOPs.   

Wednesday, 22 January – Deadline for comments on €3.5 billion Liberty Media-Dorna Sports merger deal 

Wednesday marks the deadline for interested parties to submit their observations on Liberty Media’s proposed €3.5 billion acquisition of Dorna Sports, MotoGP’s parent company, as part of the European Commission’s in-depth Phase 2 investigation. On 19 December, DG COMP announced the launch of the second phase citing ‘’serious doubts’’ about the merger’s compatibility with the internal market.  

Liberty Media announced the deal in April. The transaction includes Liberty acquiring an 86% stake in Dorna, with the company’s current management retaining the remaining 14% equity share. Subsequently, on 14 November the two parties filed a notification with the European Commission. If finalised, this merger would significantly expand Liberty’s motorsport portfolio, which already includes Formula One following its 2016 acquisition. 

The Commission’s primary concerns centres on the potential for the deal to consolidate excessive market power across two globally significant motorsport categories, potentially stifling competition in the broadcasting and media rights markets.  Hence, the Phase 2 investigation will delve deeper into the potential competitive consequences of the deal with regulators assessing whether the merger would reduce consumer choice, raise prices, or dampen innovation in motorsport coverage. 

In its publication in the Official Journal of the EU on 7 January, the Commission granted a period of 15 days to interested parties to provide feedback on the proposed deal. Following the close of this consultation period, the Commission will evaluate the submissions and proceed with its in-depth investigation. The final decision is expected by 15 May 2025.   

Thursday, 23 January – CJEU to rule on Neos’ legal challenge against Ryanair’s overturning of Italian state aid to airlines 

On Thursday, the Court of Justice of the EU (CJEU), the EU’s highest court, will rule on an appeal brought by Italian airline Neos. 

The case (C-490/23) revolves around the European Commission’s approval of a €130 million aid package adopted by Italy to compensate small airlines for COVID-19-related damages. The Commission’s decision, initially approved in December 2020 under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), was successfully challenged by Ryanair before the General Court in May 2023. The latter argued that the Commission’s reasoning was ‘’contradictory’’ and its examination of compatibility with broader EU laws was ‘’insufficient’’.  

In its appeal to the CJEU, Neos contends that the General Court erred in its interpretation of the Commission’s reasoning and its assessment of the aid’s compatibility, arguing that the EU’s lower court failed to adequately consider the unique circumstances of the pandemic and the necessity of targeted national support measures for airlines. 

This case represents yet another chapter in Ryanair’s persistent legal battles against state aid for airlines. Ryanair has consistently argued that many of these measures are disproportionate, discriminatory, and distort competition within the internal market. The airline’s legal strategy has seen both successes and setbacks, including its recent victory in February when the General Court annulled a €3.4 billion Dutch state aid scheme for Air France-KLM’s Dutch subsidiary. A decision from the CJEU in favour of Neos could see the Italian aid scheme reinstated.