The European Union has intensified its antitrust push against Apple, signaling the tech giant must open its closely guarded iPhone and iPad operating systems to rival technologies or risk significant fines. This move is part of the EU's broader enforcement of the Digital Markets Act (DMA), a set of regulations designed to foster competition in digital markets by preventing large tech firms from monopolizing their platforms.
On Thursday, EU antitrust regulators launched a formal process to ensure Apple's compliance with these landmark rules. The European Commission's goal is to force Apple to dismantle the "walled garden" around its operating systems, making them more interoperable with third-party developers and hardware makers. If Apple fails to comply, it could face fines of up to 10% of its global annual revenue.
"Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue," said EU antitrust chief Margrethe Vestager. This underscores the EU's intent to foster open ecosystems in the tech industry, starting with Apple's iOS and iPadOS systems.
The Commission is focusing on two key areas in its initial proceedings. First, it aims to ensure that Apple's iOS system allows for more seamless connectivity with third-party devices, such as smartwatches, headphones, and virtual reality headsets. This includes enabling smoother interoperability for functions like device pairing, notifications, and general connectivity features. The second area concerns how Apple handles requests from developers for greater interoperability with its software. The EU insists that these requests must be addressed in a transparent, timely, and fair manner.
Apple, in response, signaled a willingness to engage with the Commission but raised concerns over the potential security risks of complying with the new rules. "Undermining the protections we've built over time would put European consumers at risk, giving bad actors more ways to access their devices and data," the company said in a statement. Apple has long argued that its tight control over its ecosystem is essential for ensuring user privacy and device security, and opening up the system could compromise these protections.
This standoff between the EU and Apple marks a significant moment in the broader battle over Big Tech's influence on global markets. The DMA, which came into effect last year, aims to prevent dominant companies like Apple from using their market position to stifle competition. The rules apply to companies identified as "gatekeepers"-those with large user bases and the power to control key digital infrastructure. Apple, with its massive iPhone and iPad customer base, fits squarely into that category.
One of the key motivations behind the DMA is to level the playing field for smaller developers and tech firms. Apple's operating systems, for instance, restrict access to certain key features, such as Siri voice commands and its payments chip, giving Apple a distinct competitive edge. The EU wants to change that by forcing Apple to allow competitors access to these core functionalities, which could unlock new opportunities for rival products and services.
While the current process stops short of a formal investigation, the EU has made it clear that further action could be taken if Apple does not comply within the six-month window. This could lead to hefty penalties, including fines of up to 10% of Apple's global revenue, which reached nearly $400 billion in 2023.
Apple is already grappling with several legal challenges related to its business practices. The company is facing a parallel investigation into its App Store policies, which have been criticized for imposing high fees on developers and restricting their ability to offer competing payment systems. That investigation, which could also result in significant fines, is part of the EU's broader effort to rein in what it sees as anti-competitive practices by dominant tech firms.
In a recent statement, Apple pointed out that it has made strides in offering developers greater access to its operating systems while ensuring security remains a top priority. However, the company has also made moves to limit some of its services in the EU. In June, Apple announced that certain features-including Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing-would be restricted in Europe due to the DMA's requirements.
