EU warns Apple to open up iOS to rivals or face fines, Legal News, ET LegalWorld

The European Union has issued a warning to Apple, demanding the tech giant open its iPhone and iPad operating systems to rival technologies or risk significant fines under new antitrust rules. The EU‘s competition watchdog announced that Apple must comply with the Digital Markets Act (DMA) within six months or face potential penalties.

EU competition chief Margrethe Vestager announced that the commission is using specification proceedings for the first time under the DMA to guide Apple towards effective compliance. The move aims to compel Apple to re-engineer its services, allowing rival companies access to the iOS and iPadOS ecosystems.

The proceedings target two main areas: iOS connectivity features for devices like smartwatches, headphones, and virtual reality headsets, and Apple’s process for addressing developers’ requests for third-party interoperability with iOS and iPadOS.

The commission aims to specify how Apple should provide effective interoperability, allowing non-Apple devices to easily pair and connect with iPhones and receive notifications. This move is designed to ensure fair and open digital markets, with a focus on smartphone operating systems playing a crucial role.

Apple responded by saying it has created ways for developers to request additional interoperability while protecting user security. The company warned that undermining built-in protections could put European consumers at risk.

“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 said in the statement to Reuters.

This action follows a preliminary finding in June that Apple had breached DMA rules by not allowing App Store developers to freely inform users about alternative payment options outside its ecosystem.

Apple has already made several changes to comply with the DMA, including opening up iOS and iPadOS to third-party app stores and allowing developers access to its NFC technology.

If Apple fails to comply, the EU may launch a formal probe that could lead to fines of up to 10% of the company’s global annual sales. This action comes alongside an existing investigation into Apple’s App Store rules for developers.

  • Published On Sep 21, 2024 at 02:57 AM IST

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