EU’s Digital Ultimatum: Apple Given 6 Months to Unlock iOS or Face Billion-Dollar Fines

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Bloomberg reports that the European Union has thrown down the gauntlet to Apple (AAPL), demanding the tech giant open up its iOS operating system to competitors and third-party developers. This bold stance, part of the EU’s enforcement of the Digital Markets Act (DMA), could potentially lead to hefty fines for the iPhone maker if it fails to comply.

The European Commission has initiated two specification proceedings aimed at steering Apple towards adherence to its interoperability obligations under the DMA. These proceedings focus on iOS connectivity features for connected devices and Apple’s process for handling interoperability requests from developers.

EU executive vice-president Margrethe Vestager emphasized the significance of this action, stating, “Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue.” She underscored the EU’s commitment to ensuring fair and open digital markets, highlighting the crucial role of effective interoperability in achieving this goal.

The first proceeding targets iOS functionalities primarily used by connected devices such as smartwatches, headphones, and virtual reality headsets. The EU aims to specify how Apple, which is already facing a parallel investigation into its App Store rules from developers, should provide effective interoperability with features like notifications, device pairing, and connectivity.

The second proceeding scrutinizes the transparency, timeliness, and fairness of Apple’s process for handling interoperability requests from developers and third parties for iOS and iPadOS.

The EU has given Apple a six-month window to address these concerns. Failure to comply could result in fines of up to 10% of the company’s annual turnover under the DMA’s provisions.

This move signifies a major shift in the regulatory landscape for tech giants, potentially reshaping the future of mobile operating systems and digital marketplaces.

About Ari Haruni 348 Articles
Ari Haruni

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