Apple has come under heightened scrutiny from the European Union (EU) to open its tightly controlled iPhone and iPad operating systems to rival technologies. This warning comes under the newly implemented Digital Markets Act (DMA), and the European Commission’s “two specification proceedings to assist Apple in complying with its interoperability obligations” under the DMA.
The Digital Markets Act is the EU’s flagship piece of legislation aimed at curbing the dominance of “gatekeepers,” which are large tech firms like Apple that hold significant influence over digital markets. These companies operate platforms that control vast ecosystems of software, hardware, and services. Apple, which designs and manages its own operating systems—iOS and iPadOS—is seen as limiting competition by restricting access to its systems for third-party developers and rival hardware manufacturers.
The EU, through the DMA, is pushing Apple to make its operating systems fully functional with other technologies (including third-party connected devices). This includes giving developers access to features like Siri voice commands, Apple’s payments chip, and the device pairing protocols for accessories such as smartwatches, headphones, and virtual reality devices.
Apple, for its part, has long maintained that its tightly integrated ecosystem offers better protection against potential cybersecurity threats, and it argues that opening up iOS and iPadOS to third parties could undermine these defenses. Apple representatives have warned that loosening the company’s control over its operating systems could expose European consumers to a higher risk of cyberattacks and data breaches. Nonetheless, the tech titan has taken steps to comply with some of its provisions. For instance, the company has opened parts of its ecosystem to third-party developers by creating APIs (application programming interfaces) that allow external developers to access certain functionalities of iOS and iPadOS. However, these steps fall short of the full compliance the EU is demanding, leading to continued tensions between Apple and European regulators.
The European Commission, which oversees the enforcement of the DMA, has given Apple six months to bring its systems in line with the new rules. Failure to meet this deadline could result in significant financial penalties for the company. Under the DMA, the fines could reach up to 10% of Apple’s global annual turnover, which, for a company that generated nearly $400 billion in 2022, would amount to billions of dollars. According to EU competition chief Margrethe Vestager, the Executive VP of the European Commission, the gal is to hold gatekeepers accountable, as well as provide clarity and transparency for developers and consumers alike. She stressed that the EU would continue working with Apple through a “constructive dialogue” to ensure compliance with the DMA, though the possibility of formal investigations remains on the table if progress stalls.
This current situation is not the first time Apple has found itself under the EU’s microscope. The company is also the subject of a separate investigation related to its App Store policies, specifically its restrictions on allowing developers to promote alternative payment methods. The EU has already flagged several potential violations of the DMA in this area, and further findings could result in additional fines and enforcement actions against the tech giant. As part of its broader regulatory efforts, the EU is working to ensure that other major digital players like Google, Amazon, and Meta also comply with the DMA’s provisions.
