EU Pressures Apple to Open Up iOS and iPadOS to Third-Party Developers

After Lightning Port, EU Targets Apple's iPhone and iPad Systems, Demands Greater Access for Third-Party Developers - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Apple faces regulatory scrutiny as the EU pushes for third-party developer access, with a decision expected within six months. Apple Inc's AAPL iPhone and iPad operating systems have drawn European regulatory attention. On Thursday, the European Commission initiated two specification proceedings to help Apple comply with its interoperability obligations under the Digital Markets Act ('DMA'). Apple must ensure free interoperability to third-party developers and businesses to alleviate the regulator's antitrust concerns. The Commission will complete the proceedings within six months from their commencement. In 2021, the European Commission proposed a rule requiring all smartphones to adopt USB-C ports for physical charging. Also Read: EU Rules Could Make USB-C Chargers Mandatory, Apple iPhones May Need Redesign Big Tech companies, including Apple, Google parent Alphabet Inc GOOG GOOGL, Meta Platforms Inc META, and Amazon.Com Inc AMZN, have faced global regulatory scrutiny for allegedly stifling competition with their "walled gardens," as they strive to boost their revenue and profits. Apple faced regulatory scrutiny for making its operating systems compatible with only Apple hardware, citing better user security. Google faced antitrust probes over its Search market dominance by paying smartphone companies to make its search engine the default option on their web browsers. U.S. regulators initiated a probe into Nvidia Corp NVDA for alleged influence in the artificial intelligence chip market. Meta Platforms recently came under the EU scanner for alleged monopolizing the classified advertising market. It is worth noting that Google won its appeal against the European Commission's antitrust fine for its online search advertising business. Price Action: AAPL stock is trading higher by 3.76% to $226.98 at the last check on Thursday. Read Next: Apple Revenue Growth 'Just Too Slow For Investors To Get Excited About': Analyst Highlights Advertising As Future Catalyst Photo via Apple Market News and Data brought to you by Benzinga APIs

EU Tells Apple How to Expand iOS Interoperability to Third-Party Accessories

Expertise Smartphones | Smartwatches | Tablets | Telecom industry | Mobile semiconductors | Mobile gaming The European Commission has outlined how Apple must open up advantages of its device ecosystem to third-party accessories, as well as help developers with related requests. As part of the Digital Markets Act that came into force last year, EU regulators have given Apple compliance instructions on how to expand interoperability between iPhones and devices made by other companies, like smartwatches, headphones, virtual reality headsets and more. This includes features like device pairing, notifications and connectivity, the commission specified. The tech giant must pave the way for these devices to work with iOS and iPadOS at no cost to developers, as well as offer help when requested. The European Commission will work with Apple on compliance for these interoperability requirements through a pair of official proceedings that will wrap up next year. "We are focused on ensuring fair and open digital markets. Effective interoperability, for example, with smartphones and their operating systems, plays an important role in this," Margrethe Vestager, executive vice president in charge of competition policy at the European Commission, wrote in an official post. Apple confirmed in a statement that it will keep working with the Commission to protect users and clarify the regulation. The tech giant has created ways for apps in the European Union to request more interoperability with iOS and iPadOS "while protecting our users. Undermining the protections we've built over time would put European consumers at risk, giving bad actors more ways to access their devices and data." Apple emphasized the danger in giving third parties access to user devices without data protections could lead to leaking personal information or even damaging devices. The company explained that each developer request for greater interoperability requires a specific solution with complex engineering to protect EU users. Requests that aren't feasible or not appropriate under the DMA are denied. Apple didn't clarify whether these greater interoperability requests would be made available outside the EU. The Digital Markets Act is better known as a landmark ruling that requires Apple and Google to open up their devices and operating systems to third-party app stores. Apple announced that this functionality would be enabled with a new version of iOS released in March, though EU regulators rebuked the company for its App Store rules preventing apps from directing users elsewhere for payment. After WWDC in June, where it introduced its Apple Intelligence features coming in iOS 18 and its iPhone 16 line, Apple said its AI features wouldn't be launching in the EU to ensure compliance with the DMA. The company hasn't said when the features would come to European users.

EU threatens Apple with fines if it doesn't open up highly-guarded...

EU antitrust regulators on Thursday warned Apple to throw open its fiercely-guarded proprietary software to rivals -- or risk the prospect of major fines from. The European Commission launched so-called specification proceedings that will spell out what Apple has to do to abide by the Digital Markets Act (DMA), the strict new law aimed at tech giants from abusing their market share. While the move isn't a formal probe, the stepped-up enforcement could upend Apple's lucrative business model by targeting its iOS connectivity features for smartwatches, headphones, virtual reality headsets and other internet-connected devices. The Brussels-based regulator will specify how Apple will provide effective interoperability with functionalities such as notifications, device pairing and connectivity. A second proceeding concerns how Apple addresses interoperability requests submitted by developers and third parties for iOS and iPadOS, with the company told to ensure a transparent, timely, and fair process. If Apple fails to comply within six months, the EU could start imposing fines. The DMA stipulates that tech firms that don't fall in line with the law risk penalties equivalent to 10% of their annual global turnovers. Last year, Apple generated $383.93 billion in total revenue in Europe -- putting the Cupertino, Calif.-based giant on the hook for more than $38 billion if it fails to meet the regulator's demands. "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," EU Executive Vice President Margrethe Vestager said in a statement. "We are focused on ensuring fair and open digital markets. Effective interoperability, for example with smartphones and their operating systems, plays an important role in this," Vestager added. Apple has steadfastly refused to allow rivals to peek into its iOS source code, which allows the company to control development, distribution and licensing of the software that enables its devices to run. Developers who want to place their apps on Apple devices must use Apple-provided tools such as Xcode and Swift, but they have to adhere to Apple's guidelines. Apple said it will continue to work constructively with the Commission but also warned of the risks. "Undermining the protections we've built over time would put European consumers at risk, giving bad actors more ways to access their devices and data," it said in a statement. The Post has sought comment from Apple. Earlier this month, Apple released new iPhone16 that features the latest version of its iOS, which offers a suite of highly-touted artificial intelligence technology. However, Apple said it won't release certain features -- including Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing -- in the EU because of the DMA's requirements on operating systems to work with third-party apps. Tech giants Apple, Google, Amazon, Facebook and Microsoft -- which the DMA labels as "gatekeepers" -- have faced a crackdown in the EU over alleged anti-competitive behavior. In March, the EU fined Apple around $2 billion for allegedly restricting competition by preventing developers from steering users to alternative payment options outside of the App Store. Earlier this year, Facebook and Instagram parent company Meta was accused of violating the DMA by not giving users the option of safeguarding their personal data from advertisers.

Apple Gets EU Warning to Open Up iPhone Operating System

(Bloomberg) -- Apple Inc. has been warned by the European Union to open up its highly guarded iPhone and iPad operating systems to rival technologies, or eventually risk significant fines under its flagship digital antitrust rules. EU watchdogs announced under the bloc's Digital Markets Act that Apple must step into line with strict new laws on making operating systems fully functional with other technologies. The Brussels-based authority gave the company six months to comply, or face the threat of future penalties. While the announcement is a step shy of being a formal investigation, the EU aims to compel Apple to re-engineer its services to allow rival companies to access the iPhone's and iPad operating systems. "Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations," EU competition chief Margrethe Vestager said in a statement. "Effective interoperability, for example with smartphones and their operating systems, plays an important role in this." Cupertino, California-based Apple said it's created ways for developers to request additional interoperability with iPhone and iPad operating systems, while protecting users' security. Undermining protections built into its systems over time would put European consumers at risk, the company added. Apple shares rose 1.6% to $224.25 in premarket trading of 164,801 shares. The EU announcement confirms an earlier report by Bloomberg. One of the aims of the DMA is to ensure that other developers can gain access to key Apple features, such as its Siri voice commands and its payments chip. The EU may later decide to launch a formal probe if Apple doesn't step into line with the DMA, which could eventually lead to hefty fines of up to 10% of global annual sales. It is already facing a parallel investigation into its App Store rules for developers, which could also lead to hefty penalties. Earlier this month, Apple announced the latest version of its flagship device, the iPhone 16, betting it can entice consumers with modest hardware upgrades and AI technology that's still on the horizon. But in June, the US giant said that certain features -- including Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing -- would be held back from the EU, due to the DMA's requirements on operating systems to work with third-party apps. (Updates with Apple statement in fifth paragraph.)

European Union warns Apple to open up iPhone and iPad operating system or get fined

EU watchdogs announced under the bloc's Digital Markets Act that Apple must step into line with strict new laws on making operating systems fully functional with other technologies. The Brussels-based authority gave the company six months to comply, or face the threat of future penalties. Also Read: India has already made Diwali plans? Top 10 destinations are.... While the announcement is a step shy of being a formal investigation, the EU aims to compel Apple to re-engineer its services to allow rival companies to access the iPhone's and iPad operating systems. "Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations," EU competition chief Margrethe Vestager said in a statement. "Effective interoperability, for example with smartphones and their operating systems, plays an important role in this." Cupertino, California-based Apple said it's created ways for developers to request additional interoperability with iPhone and iPad operating systems, while protecting users' security. Undermining protections built into its systems over time would put European consumers at risk, the company added. Apple shares rose 1.6% to $224.25 in premarket trading of 164,801 shares. The EU announcement confirms an earlier report by Bloomberg. Also Read: ICC Men's Cricket World Cup 2023 generated ₹11,637 crore for India's economy, created 48,000 jobs: Report One of the aims of the DMA is to ensure that other developers can gain access to key Apple features, such as its Siri voice commands and its payments chip. The EU may later decide to launch a formal probe if Apple doesn't step into line with the DMA, which could eventually lead to hefty fines of up to 10% of global annual sales. It is already facing a parallel investigation into its App Store rules for developers, which could also lead to hefty penalties. Earlier this month, Apple announced the latest version of its flagship device, the iPhone 16, betting it can entice consumers with modest hardware upgrades and AI technology that's still on the horizon. But in June, the US giant said that certain features -- including Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing -- would be held back from the EU, due to the DMA's requirements on operating systems to work with third-party apps.