iPadOS designated as “gatekeeper” by EU despite failing to meet threshold.

The European Commission announced on Monday (April 29) that the iPadOS (tablet operating system) of Apple Inc. has been designated as a “gatekeeper” under the EU’s landmark Digital Markets Act (DMA) due to its importance to enterprise users. According to Margrethe Vestager, head of the EU’s antitrust authority, despite iPadOS not meeting the threshold, it still serves as a crucial gateway for many companies to reach their customers. The EU Commission stated that Apple’s enterprise user base exceeds the required threshold by 11 times, and the number of end-users is expected to approach the threshold in the near future. With a vast ecosystem, the Commission highlighted that both enterprise users and end-users are locked into iPadOS, granting Apple a strong and enduring position concerning iPadOS.

The decision by the EU regulatory authority follows an investigation initiated last September. In the previous year, Apple’s iOS operating system, App Store, and Safari browser were added to the list of services under constraint, compelling strict compliance obligations to ensure fair competition environment for competitors and provide users with more choices. The EU regulatory authority emphasized that Apple now has six months to fully comply with the obligations under the Digital Markets Act applicable to iPadOS. Apple stated that it will continue to engage constructively with the European Commission to ensure compliance with the Act’s provisions across all designated services.

Under the Digital Markets Act that came into effect on March 6th this year, Apple, Google, Microsoft, Amazon, Meta Platforms, and TikTok owner ByteDance’s 22 services have also been labeled as “gatekeepers”, exercising control over customer access to their platforms. Companies violating the Act could face fines of up to 10% of their global annual turnover.