EU warns Apple (AAPL.US) to open up iPhone and iPad operating system or face huge fines

Written byAInvest Visual
Thursday, Sep 19, 2024 7:10 am ET1min read
AAPL--

The EU has warned Apple (AAPL.US) to open up its highly protected iPhone and iPad operating systems to rivals, or face potentially massive fines under EU digital antitrust rules.

EU regulators said Apple must comply with new strict rules to make its operating systems fully compatible with other technology under the Digital Markets Act (DMA). The regulators gave Apple six months to comply, or face the threat of future fines.

While the announcement is a step away from a formal adjustment, the EU's goal is to force Apple to redesign its services to allow rivals access to its iPhone and iPad operating systems. One of the DMA's aims is to ensure other developers can access key iPhone features such as Siri voice commands and payment chips. If Apple does not comply with the DMA, the EU may then decide to launch a formal investigation, which could ultimately lead to massive fines of up to 10% of global annual turnover.

"Today we are using the DMA's regulatory procedure for the first time to guide Apple to effectively comply with its interoperability obligations. Effective interoperability, such as interoperability between smartphones and their operating systems, plays an important role here," Margrethe Vestager, EU commissioner for competition, said in a statement.

Apple said it had created some ways for developers to add extra interoperability with the iPhone and iPad operating systems while protecting user safety. The company added that over time, compromising its built-in protections would put European consumers at risk.

Apple had previously said in June that some features, including Apple Intelligence, iPhone mirroring and SharePlay screen sharing, would not be available in the EU due to the DMA's requirement for operating systems to be compatible with third-party apps.

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