EU Questions Apple Over App Store Security Risks

EU Targets Apple, Google, and Microsoft in Major Financial Fraud Inquiry.The European Union is launching a new inquiry into major tech companies. It will question Apple, Google, Microsoft, and Booking.com. The goal is to assess their efforts to prevent online financial fraud.According to the Financial Times, the European Commission is taking this step. Officials want to ensure these platforms are effectively protecting users from scams. This move signals a new regulatory priority for the bloc.

Scrutiny Focuses on App Stores and Search Results

European Commissioner Henna Virkkunen outlined the plan. She said the commission will send formal requests for information. Each company will be questioned on specific areas of concern.Apple and Google will face questions about their app store review processes. The focus is on preventing fake banking and financial apps. Microsoft and Google will also be queried about fraudulent search results.Booking.com’s role involves counterfeit hotel listings. These scams often trick travelers into sending payments to criminals. The companies must demonstrate their fraud detection systems are robust.

Potential Fines and Broader Implications

This information request is a preliminary step. However, it could lead to a full-blown investigation. The Digital Services Act empowers the EU to impose significant penalties.Fines can reach up to six percent of a company’s annual global revenue. For tech giants, this amounts to billions of dollars. The inquiry places new pressure on digital platforms to self-police.Apple has already responded to the news. The company highlighted its own anti-fraud achievements. In a recent report, Apple said its App Store prevented over $2 billion in fraudulent transactions last year.The company also pointed to a contradiction. It noted that EU laws requiring alternative app stores may weaken its security. This creates a complex challenge for regulators and companies alike.

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This financial fraud inquiry marks a significant escalation in the EU’s tech oversight. The outcome will likely shape future digital safety regulations worldwide. Consumers and companies are watching closely.

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What specific scams is the EU concerned about?

The EU is targeting fake banking apps and fraudulent investment platforms. These scams appear legitimate but steal user credentials and money. Fake listings on travel sites are also a major concern.

What law gives the EU the power to do this?

The Digital Services Act (DSA) provides the legal foundation for this inquiry. The DSA sets strict rules for how large online platforms manage illegal content and systemic risks. Non-compliance can result in hefty fines.

How has Apple responded to the inquiry?

Apple stated it has strong anti-fraud measures in place. It cited its 2024 report showing it stopped over $2 billion in fraudulent transactions. The company also expressed concern that new EU laws undermine its security efforts.

What are the potential consequences for the companies?

If the EU finds the companies negligent, they could face massive fines. Penalties can be as high as 6% of their global annual turnover. This inquiry could also force permanent changes to their business practices.

Is this related to the EU’s other actions against big tech?

Yes, this is part of a broader pattern of EU tech regulation. It follows antitrust cases and the implementation of the Digital Markets Act. The bloc is actively enforcing its new digital rulebook.