The European Commission, along with national consumer authorities, has called on Apple (AAPL, Financials) to halt geo-blocking practices on its media services, following an investigation by the Consumer Protection Cooperation Network
Access limitations on Apple Media Servicesincluding the App Store, Apple Arcade, Music, iTunes Store, Books, and Podcastsidentified by the Commission and national agencies in Belgium, Germany, and Ireland Results include limits on payment methods connected to the country of account registration and access depending on users’ residence.
Users come across difficult to change region-specific interfaces that the CPC Network claims go against EU anti-geo-blocking regulations. Payment methods are limited to cards issued in the user’s registered country, which influences transactions for persons visiting or temporarily living in another EU member state. Users cannot download applications from other EU editions of the App Store either.
These behaviors, according to the CPC Network, can violate the Geo-blocking Regulation of the EU, which forbids discrimination based on residence or nationality. Apple has one month to react and suggest changes. Should Apple ignore these results, the CPC Network might seek enforcement.
Amid this development, Apple exceeded Wall Street projections with its $94.9 billion September quarter sales. Driven by a 5.5% year-over-year rise in iPhone sales$46.2 billionthis growth did not, however, stop net income from decreasing by 35% to $14.7 billion, mostly from a significant tax burden in Europe.
On a brighter note, when it comes to AI, Apple revealed “Apple Intelligence,” a suite of artificial intelligence features linked into its devices, during its annual Worldwide Developers Conference in June 2024. This effort comprises improvements to Siri and other AI-driven tools meant to enhance user experience.
This article first appeared on GuruFocus.
