The European Union is planning to query major tech companies like Apple, Google, Microsoft, and Booking.com on whether they are doing enough to prevent online financial fraud, reports Financial Times.
European Commission tech leader Henna Virkkunen told Financial Times that the EC will ask the three tech companies for information on their efforts to block online scams that aim to steal money from Europeans. She said that financial scams are a new priority for the EC, with the commission looking to confirm that tech companies "take all their efforts to detect and prevent" fraudulent activity.
Virkkunen plans to look at how Apple and Google handle fake apps in their App Stores, like fake bank apps. Google and Microsoft will be asked about fake search results in Google Search and Bing, while Booking.com will be queried about fake listings.
The EC is just asking for information at this point, but there could be an investigation that leads to fines. The Digital Services Act allows for penalties up to six percent of a company's annual global turnover.
In a statement to GeekWebGuides, Apple said that it has continually improved its antifraud measures to keep consumers safe from ever-evolving fraud tactics. Apple also pointed out the hypocrisy of the EU's fraud investigation when EU law mandates support for alternative app marketplaces that can skirt Apple's antifraud protections.
As digital threats have evolved in scope and complexity over the years, Apple has expanded its antifraud initiatives to address these challenges and protect users. Every day, teams across Apple monitor and investigate fraudulent activity and utilize sophisticated tools to stop bad actors. Unfortunately, the European Commission is undermining our efforts by forcing Apple to allow alternative app distribution and payments, despite warnings that this puts users at greater risk of fraud and scams. While the regulator focuses on issuing misguided and counterproductive threats of investigation and fines, we will continue to advocate for the safety and security of our users.
Apple shares yearly reports on how its App Store review process prevents fraud and keeps consumers safe. In 2024, Apple said that the App Store prevented over $2 billion in fraudulent transactions. Over 146,000 developer accounts were terminated over fraud concerns, and 1.9 million App Store submissions were rejected due to security, reliability, and user experience concerns, including privacy violations and fraud concerns.
In the European Union, Apple is required to support third-party app marketplaces that allow consumers to install apps outside of the App Store. Apple has a Notarization process that checks apps for "egregious fraud," but there are far fewer rules that non-App Store apps have to follow. Apple has continuously argued that the Digital Markets Act and alternative app marketplaces in the EU expose users to fraud and weaken Apple's security standards.
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