Apple Ordered by EU to Open Ecosystem to Rivals, Faces Potential Fines

Apple has been directed by European Union antitrust regulators to open its tightly controlled ecosystem to competitors, a move that could lead to investigations and hefty fines if the company fails to comply. According to Reuters, the European Commission issued the order on Wednesday, laying out specific steps Apple must take in alignment with the EU’s landmark Digital Markets Act (DMA).

The decision follows six months of scrutiny under the EU’s so-called specification proceedings, which were launched to ensure Apple adheres to the new rules aimed at curbing the influence of major technology companies. Per Reuters, the first order mandates that Apple grant rival manufacturers of smartphones, headphones, and virtual reality devices access to its technology and operating system. This measure is designed to enable seamless connectivity with iPhones and iPads.

Additionally, the second EU order establishes a structured process and timeline for Apple to handle interoperability requests from app developers. This aspect of the ruling seeks to promote a more open digital environment, preventing Apple from using its dominance to disadvantage competitors.

Related: Germany’s Highest Court Upholds Antitrust Ruling Against Apple

Apple has strongly criticized the EU’s actions, arguing that the regulations will negatively impact consumers while benefiting its competitors. “Today’s decisions wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules,” the company stated in an email. “It’s bad for our products and for our European users. We will continue to work with the European Commission to help them understand our concerns on behalf of our users.”

According to Reuters, the European Commission maintains that its ruling is simply an enforcement of the law and aims to provide regulatory clarity to both Apple and developers. “With these decisions, we are simply implementing the law, and providing regulatory certainty both to Apple and to developers,” said EU antitrust chief Teresa Ribera in a statement.

Source: Reuters