As reported by Bloomberg via Yahoo!Finance, Apple Inc. has received a warning from the European Union to open up its closely guarded iPhone and iPad operating systems to competing technologies, or potentially face substantial fines under the EU's flagship digital antitrust regulations.
EU regulators, operating under the Digital Markets Act, have mandated that Apple adhere to stringent new laws regarding the full compatibility of its operating systems with other technologies. The Brussels-based authority has given the company a six-month deadline to comply, or else it may face future penalties.
While this announcement falls short of a formal investigation, the EU seeks to compel Apple to reconfigure its services to enable rival companies to access the iPhone's and iPad's operating systems.
"This is the first time we have used specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations," stated Margrethe Vestager, the EU's competition chief. "Effective interoperability, for example with smartphones and their operating systems, plays an important role in this."
Responding to the EU's directive, Apple, headquartered in Cupertino, California, has stated that it has developed mechanisms for developers to request additional interoperability with the iPhone and iPad operating systems while safeguarding users' security. The company added that undermining the built-in protections of its systems over time would jeopardize European consumers.
Following the EU's announcement, Apple's shares saw a 1.6% increase to $224.25 in premarket trading of 164,801 shares. The EU's statement corroborates an earlier report by Bloomberg.
One of the key objectives of the Digital Markets Act is to ensure that other developers can access crucial Apple features, such as Siri voice commands and its payments chip.
If Apple fails to align with the DMA, the EU may opt to initiate a formal investigation, potentially resulting in hefty fines amounting to up to 10% of its global annual sales. The company is already facing a concurrent investigation into its App Store rules for developers, which could also lead to substantial penalties.
Earlier this month, Apple unveiled the latest iteration of its flagship device, the iPhone 16, banking on the prospect of attracting consumers with modest hardware upgrades and forthcoming AI technology.
However, in June, the tech giant announced that certain features, including Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing, would be withheld from the EU due to the DMA's requirements concerning the compatibility of operating systems with third-party apps.
Comments