Apple Warns Australia Over Digital Markets Act, Cites Security risks

⁢ Updated June 22, 2025
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Apple is cautioning the Australian government against adopting the European Union’s Digital Markets Act (DMA),
⁤ arguing that such a ⁢move could expose Australians to notable security ⁤and privacy risks. The⁤ tech ‍giant’s
⁣ warning comes as Australia ⁢considers implementing DMA-style regulations to address the market power of major
⁣ tech companies⁣ and promote competition in the digital space.

The EU’s Digital Markets Act targets the core power of Big Tech: user lock-in. It grants Europeans the ability to
move between platforms without losing data or contacts.For smaller businesses, the DMA seeks to break Apple’s
⁢ ‍ hold on payment processing within its ecosystem. Currently, Apple levies⁤ a commission of up to 30% on
⁢ transactions⁤ made through iPhone and iPad apps, while prohibiting developers‍ from offering choice payment
⁢ options.

Critics of Apple’s practices point ⁤out ⁢that the actual cost of processing payments‍ in the EU is typically less
than 1%, making Apple’s commission a considerable margin. The DMA’s provisions for “sideloading,” which would
⁢ allow users to install ⁤apps from outside the official App Store,aim to address this issue.

Apple contends that these changes would undermine the security and privacy protections it provides to its
⁤ ‍ customers.The company asserts that Australians would be less safe if they had greater control over their app
choices and payment methods. Though, the Australian Treasury issued⁤ a report⁤ in late 2024 seriously
considering adopting DMA-like rules.

While Apple has⁤ taken steps to ⁤protect user privacy ⁢at ⁤times, the company has also faced criticism for its own
‍ data collection practices and its ⁢compliance with government censorship demands. Critics argue that Apple
sometimes⁤ prioritizes its financial interests and relationships with⁤ repressive governments over the well-being
⁤ of its users.

The global push for antitrust action continues to grow, with regulators around the world examining ⁢the practices
‍ of tech giants. The EU’s DMA is seen as a⁢ potential model for other countries⁣ seeking to address the power of
dominant tech platforms.

What’s next

Australia’s decision on whether to⁤ adopt DMA-style rules could have ⁤significant implications for the tech
industry and consumers. The debate is ⁢expected to continue as policymakers weigh the potential benefits of
increased competition against concerns about⁢ security and privacy.