Preliminary findings have been issued by the European Commission to require Apple to enable interoperability between its iOS devices and third-party hardware in order to enforce its Digital Markets Act, or DMA. The ruling requires Apple to make free access available to developers and businesses over hardware and software features controlled by its operating systems.
“Under the DMA, Apple must provide developers and businesses with free and effective interoperability with hardware and software features controlled by its operating systems iOS and iPadOS, which are core platform services for which Apple was designated as gatekeeper,” stated the Commission’s press release.
The probe, launched in September, had been investigating Apple’s plans for third-party compatibility on smartwatches, headphones, and virtual reality headsets. It touches upon core features like notification functionality, device pairing, and connectivity. These will also be addressed concerning allegations of anti-competitive behavior and favoritism to products like AirPods and Apple Watch.
Apple vs. Competitors
CODE, a coalition that includes Google, Meta, and Lenovo, supports the Commission’s stance. “We believe that hardware interoperability will drive innovation and increase competition,” CODE told Euronews. “It will give everyday users meaningful choice across devices, applications, and services, regardless of brand.”
Apple has responded by publishing a report titled “It’s Getting Personal: How Abuse of the DMA’s Interoperability Mandate Could Expose Your Private Information.” The company argues that sharing system specifications with competitors could hamper innovation. “Apple is the only company being forced to share its innovations in this way with everyone else, including those who do not share its commitment to user privacy,” Apple stated to Euronews.
The European Commission has termed Apple a “gatekeeper” under the DMA, which means that dominant platforms must allow interoperability access to their services and features. This regulation will help foster competition and innovation in the digital market.
However, Apple raised questions that demand from competitors, most from Meta, could pose potential risks to their privacy. It pointed out that Meta has filed more than 15 interoperability requests in which sensitive user data can be exposed and therefore expose the privacy protections instituted at Apple.
EU Proposes New Rules Forcing to Open iOS Ecosystem to Third-Party Devices
The Commission has made public consultations until January 9 to solicit input from citizens, companies, and organizations regarding the specifics of its implementation including technical requirements, timelines, and feasibility. This follows another preliminary finding in June indicating that the company had infringed upon EU competition law in charging App Store fees.
The interoperability requirements are expected to be finalized by March 2025 after stakeholder feedback analysis. The measures of the Commission also indicate better transparency of internal iOS features in order to make the European Union’s digital ecosystem more competitive.
This latest regulatory action falls in line with the overall efforts of the EU to increase competition in the digital market and limit the influence of major tech companies. The DMA came into force in 2023, targeting large tech platforms as “gatekeepers” for fair competition and open markets.
The need for Apple to open its ecosystem to third-party devices would significantly change the way the company would have to conduct its operations in the European market and its business model as well as competitive relationship might be influenced by this.
This regulatory change requires new business models and compliance by March 6, 2024. Failure to comply may even attract penalties of up to 10% of worldwide turnover. The DMA combines with the Digital Services Act to form a comprehensive regulation framework, ensuring fair competition and consumer protection in Europe’s digital market.
