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On September 20, 2024
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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.)
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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.
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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.
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The European Union is set to issue a warning to Apple, demanding the tech giant open up its iPhone operating system to competitors or risk substantial fines. This move is part of the EU's efforts to increase competition in the digital market.
The European Union is preparing to deliver a stern warning to Apple Inc., demanding that the tech giant open up its iPhone operating system (iOS) to rival app stores and payment services 1. This move comes as part of the EU's ongoing efforts to increase competition in the digital market and reduce the dominance of major tech companies.
If Apple fails to comply with the EU's demands, the company could face significant financial penalties. The European Commission, the EU's executive arm, has the authority to impose fines of up to 10% of Apple's global annual sales 2. Given Apple's massive revenue, such fines could amount to billions of dollars, potentially impacting the company's bottom line and its standing in the global tech market.
The EU's requirements extend beyond just the iPhone. The regulatory body is also pushing for Apple to open up its iPad operating system, further expanding the reach of its competitive measures 2. This comprehensive approach demonstrates the EU's commitment to reshaping the digital landscape across multiple devices and platforms.
Apple has long maintained a closed ecosystem for its devices, particularly the iPhone. The company's App Store is currently the only official way for users to download and install applications on iOS devices. This practice has been a point of contention for competitors and regulators alike, who argue that it stifles competition and innovation in the app market 3.
The EU's action against Apple is part of a broader regulatory push to curb the power of big tech companies. This move could have far-reaching implications for the tech industry as a whole, potentially forcing other companies to reassess their business models and practices. It also signals a shift towards more open and competitive digital markets, which could benefit consumers and smaller tech companies alike.
As of now, Apple has not publicly responded to the EU's impending warning. However, the company has historically defended its closed ecosystem, citing security and user experience as primary reasons for maintaining control over its operating systems 1. It remains to be seen how Apple will navigate these regulatory challenges and whether it will make significant changes to its longstanding business model in response to the EU's demands.
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Major tech companies, including Meta and Google, are reportedly withholding certain AI products from the European Union due to regulatory uncertainties. This move highlights the growing tension between rapid AI development and regulatory compliance.
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The European Union marks one year since implementing landmark digital regulations, ramping up efforts to curb Big Tech's market dominance and protect user rights. Tech giants face increased scrutiny and potential fines as the EU aims to reshape the digital landscape.
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The European Union's top court has ordered Apple to pay €14.4 billion in back taxes to Ireland, ruling that the tech giant received illegal tax benefits. This decision marks a significant victory for the EU in its fight against corporate tax avoidance.
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Europe continues its fight against Big Tech companies over issues of taxation, data privacy, and disinformation. The EU is implementing new regulations to address these concerns and level the playing field.
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Apple's new AI-powered feature, Apple Intelligence, will not be available to iPhone users in the European Union and China due to regulatory concerns. This decision affects nearly two billion potential users.
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