Excerpt from verdict Article, Published on Sep 20, 2024.
Apple is facing heightened pressure from the European Union regarding compliance with the Digital Markets Act (DMA), which demands greater interoperability between the company’s iPhone and iPad operating systems (OS) and rival technologies. The EU has issued a formal warning, requiring Apple to ensure full OS compatibility with third-party services and competitors within six months or face significant penalties. This includes making key Apple features, such as Siri voice commands and the payment chip, accessible to developers and other platforms.
According to EU executive vice-president Margrethe Vestager, this is the first time specification proceedings under the DMA have been used to push Apple toward compliance, fostering fair competition in digital markets. While the EU has not launched a formal investigation, the potential penalties for non-compliance could be severe, including fines amounting to 10% of Apple’s global annual sales.
Apple, headquartered in Cupertino, California, has responded by emphasizing its commitment to user security. The company has stated that compromising its built-in security systems for the sake of interoperability could pose a risk to consumer safety, particularly in Europe. However, the EU continues to push for fairer market conditions for developers, aiming to provide them with the tools to access Apple’s technology more freely.
In addition to this warning, Apple is also under scrutiny for its App Store policies, which have raised concerns regarding developer access. The latest developments come as Apple recently launched the iPhone 16 and withheld certain features from the EU market due to compliance issues. As the regulatory landscape tightens, Apple’s ability to navigate these demands will be closely watched.
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