The European Union (EU), which has been taking bold steps to contain market dominance by big tech — primarily US tech companies — has announced yet another measure, this time targeting Apple’s iPadOS. The Cupertino giant, which has already borne the brunt of EU’s DMA for a while now, has now been six months to ensure iPadOS remains compliant with the DMA (Digital Markets Act).
Previously, the DMA focused its regulatory lens on Apple’s iOS mobile operating system, Safari browser, and the ubiquitous App Store. However, with iPadOS now falling under the DMA’s umbrella, Apple faces a new set of compliance challenges. The company has just six months to ensure its iPad ecosystem adheres to a range of obligations mandated by the Act. For example, Apple now has to allow users to download apps from sources beyond the official App Store, thereby fostering increased competition and providing users with greater freedom in app selection. Another key aspect of the DMA revolves around user control. Currently, iPad users are burdened with a number of pre-installed apps that cannot be removed. The DMA mandates that Apple grant users the ability to uninstall these pre-installed apps, thereby giving them greater control over the software on their iPads.
“The Digital Markets Act is a dynamic tool which allows us to tackle the realities of digital markets. Today, we have brought Apple’s iPadOS within the scope of the DMA obligations. Our market investigation showed that despite not meeting the thresholds, iPadOS constitutes an important gateway on which many companies rely to reach their customers. Today’s decision will ensure that fairness and contestability are preserved also on this platform, in addition to the 22 other services we designated last September. Apple has six months to make iPadOS compliant with the DMA,” Margrethe Vestager, Executive Vice-President in charge of competition policy, commented on the matter.
The EU’s decision to include iPadOS within the DMA framework follows an investigation by the regulator, which revealed that it has the “features of a gatekeeper,” while the number of businesses utilizing iPadOS significantly exceeds the DMA’s quantitative threshold. Furthermore, Apple’s strategies discourage users (business and end users alike) from switching to alternative tablet operating systems. These strategies could potentially include factors like app compatibility, integration with other Apple devices, and user familiarity with the iPadOS interface. This lock-in effect creates an environment where users feel compelled to remain within the iPadOS ecosystem.
The inclusion of iPadOS under the EU’s DMA has the potential to bring about significant changes for iPad users within the EU. For one, it allows users to access apps that might not have been approved by Apple, potentially leading to a broader and more diverse selection of applications. Furthermore, iPad users are currently stuck with a number of pre-installed apps they might not even use. Under the DMA, Apple will be required to allow users to uninstall these apps, giving them greater control over the software on their devices.
Apple is not the first Big Tech player to face the scrutiny of the European Commission, and is unlikely to be the last. Last September, the commission designated Alphabet, Amazon, Meta, ByteDance, and Microsoft as gatekeepers alongside Apple. These companies are now subject to various DMA regulations aimed at fostering a more level playing field. Companies deemed to be non-compliant with the DMA face significant consequences. Potential sanctions include hefty fines – reaching up to 10% of a company’s global revenue, with a possibility of doubling for repeat offenses. Additionally, the EU can impose stricter behavioral or structural changes to a company’s business practices.
