EU Warns Apple: Open iPhone Operating System or Face Fines

The European Union issued a warning to Apple on Thursday (September 19) demanding that Apple open up its highly protected iPhone and iPad operating system iOS to be compatible with competing companies and third-party developers, or face hefty fines.

This move is part of the EU’s enforcement of the “Digital Markets Act” (DMA) antitrust regulations, aimed at ensuring fair competition in the digital market.

The European Commission has initiated two regulatory procedures to guide Apple in complying with interoperability obligations under the DMA. These latest procedures focus on the iOS connectivity functions that link different devices and the processes Apple has established to handle interoperability requests from developers.

EU Commissioner for Competition Margrethe Vestager stated in a press release, “Today is the first time we are using regulatory procedures under the DMA to guide Apple in effectively complying with its interoperability obligations.”

“Effective interoperability, such as interoperability with smartphones and their operating systems, plays a crucial role.”

Currently, Apple provides limited access to certain iOS features (such as Siri voice assistant) to developers and has restrictions on access to the contactless payment system relied upon by Apple Pay. The EU’s action aims to address these limitations and ensure a more open ecosystem.

Apple, headquartered in Cupertino, California, emphasized that weakening its system’s built-in security measures would expose European consumers to risks.

The EU has given Apple six months to address these issues. If the company fails to comply, the EU may launch a formal investigation. Under the DMA regulations, Apple could face fines of up to 10% of its annual turnover.

Apple has already relaxed its App Store rules for developers and pledged to open up its NFC chip to third parties in accordance with the DMA. However, the EU’s warning suggests that these measures may not be sufficient to fully comply with the new regulations under the DMA.

Earlier this month, Apple released the iPhone 16. However, back in June, Apple indicated that due to the requirements of the DMA for compatibility between the operating system and third-party applications, certain features – including Apple Intelligence, iPhone Mirror, and SharePlay screen sharing – would not be available in the EU.

(This article is based on a report from Bloomberg)