EU Orders Apple to Open iOS to Rival Developers for Compliance

EU regulators have started proceedings to ensure Apple complies with the Digital Markets Act, mandating interoperability with rival devices, risking fines if not adhered to.

EU regulators have initiated proceedings to compel Apple to comply with the interoperability provisions of the Digital Markets Act (DMA), which aims to foster fair competition in the digital economy. The European Commission has launched two "specification proceedings" to ensure that Apple opens its iOS ecosystem to third-party developers and devices, such as smartwatches, headphones, and virtual reality headsets. These steps mark the first time the EU has employed specification proceedings under the DMA to guide a major tech company toward compliance through constructive dialogue.

The first proceeding focuses on ensuring interoperability with several iOS connectivity features and functionalities. This encompasses effective device pairing, notifications, and other connectivity functions crucial for companies producing connected devices. Apple is required to provide free and effective interoperability with these features to comply with DMA regulations.

The second proceeding scrutinizes Apple's process for handling interoperability requests from third-party developers and businesses. The Commission intends to assess whether Apple’s procedural framework for these requests is transparent, fair, and timely. The goal here is to provide all developers a predictable path to interoperability, thus fostering innovation and ensuring fair competition.

Apple risks fines of up to 10% of its annual global turnover if it fails to meet the Commission’s directives. The Commission will conclude its investigation within the next six months and subsequently specify any required changes that Apple must undertake to align with the DMA.

Apple has begun making changes to comply with the DMA, including providing more browser information to EU users and introducing new default settings for various iOS functionalities. The company has also announced it would allow users to delete several core apps, including the App Store, Messages, Photos, Camera, and Safari. However, critics argue that Apple’s efforts haven’t gone far enough, citing additional fees and other restrictions as stumbling blocks.

Julien Trosdorf, an Apple spokesperson, stated that the company has built a robust framework of over 250,000 APIs to ensure developers can access its operating system in a manner that maintains users' privacy and security. However, Apple expressed concerns that broadening access could expose European consumers to increased risks from bad actors aiming to exploit their devices and data. Despite these concerns, Apple pledged to continue working constructively with the European Commission to find a balanced way forward.

Margrethe Vestager, the EU's head of competition policy, emphasized the importance of fair and open digital markets, noting that effective interoperability plays a crucial role in this ecosystem. Drawing on experience from previous antitrust investigations into Apple, such as the probe into Apple’s contactless payment technology, the Commission aims to leverage these insights to enforce DMA compliance effectively.

The Digital Markets Act, which became effective last year, is designed to prevent market abuse by major tech companies. The rules mandate that companies designated as "gatekeepers" — those holding significant market power — adhere to stringent parameters that encourage market competitiveness and interoperability.

As the Commission proceeds with its investigations, it will publicly share its preliminary findings and specific compliance measures required of Apple. These proceedings illustrate the EU’s commitment to enforcing its digital market regulations to ensure fair competition and greater innovation within the digital space.

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