Facebook Inc (NASDAQ: FB) in innings with the European Union on Tuesday – through a consultative process on a proposed Digital Services Act – the accused Apple Inc. (NASDAQ: AAPL) anti-competitive behavior.
What happened: In response to a question about the challenges she faces as a business user of large online platforms, the social networking company, led by Mark Zuckerberg, said the App Store is “virtually the only way for developers to connect with consumers on Apple devices.”
Facebook claimed to have faced issues stemming from Apple’s policies and controls over in-game payments, gaming apps, login tools, and online advertising.
“In each category, Apple has made policy and compliance decisions that prioritize its own services and revenue streams over others,” the social media giant said.
Why is it important: Digital Services Act aims to curtail the power of Apple, Facebook and Alphabet inc (NASDAQ: GOOGL) (NASDAQ: GOOG) of a Google unit, according to Business Insider, previously reported News.
Facebook’s announcement is reportedly a direct attempt to influence the proposed law against the tech giant led by Tim Cook.
Tensions are mounting between the two companies. The social media giant claimed last month that Apple would not let it inform its users of the latest. 30% reduction about payments in the application.
The introduction of iOS 14 is also likely to hit the ad revenue of the social network and its platforms.
However, earlier this month, Cupertino said it was delaying the release of privacy features in iOS 14 that will impact Facebook.
The two companies are also at odds with the social media giant Menlo Park’s cloud gaming app being denied entry to the App Store on multiple occasions.
Action price: Facebook shares closed down 2.1% at $ 267.97 on Thursday and 0.54% after the close. On the same day, Apple shares closed down nearly 3.2% to $ 113.49 and added 0.54% outside business hours.
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