EU Begins Proceedings To Force Apple To Open Up iOS, iPadOS

The European Union has begun proceedings under the tough Digital Markets Act that puts it on a collision course with tech giant Apple.

The EU executive arm, the European Commission, announced on Thursday that it has “started two specification proceedings to assist Apple in complying with its interoperability obligations under the Digital Markets Act (DMA).”

The DMA came into force in 2022 and it poses a challenge to Apple’s closed ecosystem, as under DMA rules Apple must provide free and effective interoperability to third party developers and businesses or risk hefty financial penalties (up to 10 percent of its global revenues if it fails to comply).

DMA gatekeepers

In September 2023 the European Commission named designated ‘gatekeepers’ that were subject to its Digital Markets Act (DMA).

The DMA requires ‘gatekeepers’ to allow third-party apps or app stores on their platforms and make it easier for people to switch to rivals.

Under the DMA, the companies are also prohibited from favouring their services over rivals.

There is no doubt that DMA has strict obligations.

In June Apple said it will delay the introduction in Europe of three new technologies, including its Apple Intelligence AI features, over concerns about the EU’s DMA rules.

Specification proceedings

Now on Thursday the Commission has announced “specification proceedings” that will formalise it’s regulatory dialogue with Apple on certain specific areas of Apple’s compliance with Article 6 DMA.

“Pursuant to Article 8(2) of the DMA, the Commission may, on its own initiative, adopt a decision specifying the measures a gatekeeper has to implement to ensure effective compliance with substantive DMA obligations, such as the interoperability obligation of Article 6 DMA,” it said.

The first proceeding focuses on several iOS connectivity features and functionalities, predominantly used for and by connected devices (smartwatches, headphones etc). The Commission intends to specify how Apple will provide effective interoperability with functionalities such as notifications, device pairing and connectivity.

The second proceeding focuses on the process Apple has set up to address interoperability requests submitted by developers and third parties for iOS and iPadOS. Under the DMA, the request process needs to be transparent, timely, and fair so that all developers have an effective and predictable path to interoperability and are enabled to innovate.

The Commission said it will conclude the proceedings within 6 months from their opening, and a non-confidential summary of the preliminary findings and envisaged measures will be published to enable third parties to provide comments.

“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,” said Margrethe Vestager, executive VP in charge of competition policy.

“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,” said Vestager. “This process will provide clarity for developers, third parties and Apple. We will continue our dialogue with Apple and consult third parties to ensure that the proposed measures work in practice and meet the needs of businesses.”

Apple’s response

Apple was quoted by the Associated Press as saying it has “created ways for apps in the European Union to request additional interoperability with iOS and iPadOS while protecting our users.”

“Undermining the protections we’ve built over time would put European consumers at risk,” the company said, adding it will continue to “work constructively” with commission.

The European Commission is already investigating Apple over its App Store rules for developers.

Earlier this month Vestager was successful in forcing Apple to pay Ireland €13bn (£11bn or $14.4 billion) in unpaid taxes – in a move that ended an eight year battle.