Apple warned by the European Union, may face hefty fines if it refuses to open the iOS system
Apple Inc. must comply with the new regulations within six months, otherwise it will face a 10% penalty on its annual revenue. The European Union hopes that this move will force Apple to redesign its closed ecosystem, allowing competitors to also access the operating systems of iPhone and iPad
According to Bloomberg, the European Union regulatory agency recently issued a warning to Apple, demanding that it open up the iPhone and iPad operating systems to competitors. It emphasized that if Apple does not comply with the EU's Digital Markets Act (DMA), it may face the risk of hefty fines.
Officials in Brussels stated that Apple must comply with the new regulations within six months, or face severe penalties. The EU hopes that this move will force Apple to redesign its closed ecosystem so that competitors can also access the operating systems of iPhones and iPads.
European Commissioner for Competition Margrethe Vestager stated:
"Today we are using the regulatory procedure under the DMA for the first time to urge Apple to fulfill its interoperability obligations, ensuring that smartphones can cooperate with other technologies."
Apple may face fines of up to 10% of its annual revenue if it refuses to cooperate
One of the goals of the DMA is to ensure that other developers can access Apple's key features, such as its Siri voice commands and payment chips.
If Apple refuses to cooperate, the EU may launch a formal investigation, and the final fine could amount to as much as 10% of Apple's global annual revenue. Currently, Apple is already facing another antitrust probe regarding its App Store rules, which could also result in hefty fines.
In March of this year, the U.S. Department of Justice also made similar accusations against Apple regarding the iPhone and iPad, stating that Apple imposes software and hardware restrictions on iPhones and iPads, making it harder for competitors to compete and for consumers to switch phones.
The complaint listed five technologies through which Apple suppresses competition: super applications, cloud streaming gaming applications, messaging applications, smartwatches, and digital wallets.
While Apple has not yet responded to this matter, this incident has once again sparked discussions about its closed ecosystem. Just on the 10th of this month, Apple released its latest iPhone 16, attempting to attract consumers with moderate hardware upgrades and upcoming AI technology.
However, due to the restrictions of the DMA, certain features such as Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing will not be usable in the EU.