EU may force Apple to “open up” to competitors

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The European Union (EU) may force Apple to open up its device ecosystem to rivals. Thierry Breton, the EU Commissioner for International Market, recently said that the iPhone maker must allow consumers to access third-party app stores and other competing services on their devices. Breton cited rules under the newly adopted DMA (Digital Markets Act) for these requirements, which are also applicable to other tech firms.

“The next job for Apple and other Big Tech, under the DMA, is to open up its gates to competitors,” the EU Commissioner said on Tuesday. “Be it the electronic wallet, browsers or app stores, consumers using an Apple iPhone should be able to benefit from competitive services by a range of providers.” Breton made the comments shortly after meeting Apple CEO Tim Cook in Brussels, Belgium. The duo probably discussed this during the meeting.

Apple switched to USB-C charging on iPhones due to EU rules

The EU’s DMA is a new antitrust legislation that aims to control tech companies. The primary objective is to increase competition with rules that prevent existing major players from abusing their dominance to unfairly influence the market. The DMA sets out a list of dos and don’ts for these companies so they can’t subjugate smaller rivals.

Among other things, the impending legislation requires smartphones and other electronic products to use a common charger. It also requires smartphone makers to allow access to third-party app stores or sideloading of apps from other sources. While Android already does that, Apple’s iOS is a closed ecosystem with the App Store being the only source for downloading apps. Breton is now publicly calling the company to act fast.

The EU Commissioner said this is the “next job” for Apple because it has already adopted USB-C charging on iPhones. The newly released iPhone 15 series ditches the company’s proprietary lightning charging port for a more universal solution. However, it’s unwilling to open up its closed hardware and software ecosystem to rivals due to potential security and privacy issues arising from being installed via third-party sources.

Brenton doesn’t buy Apple’s arguments, though. He says the DMA ensures better competition in the market without increasing security risks. “EU regulation fosters innovation, without compromising security and privacy,” a Reuters report cites the Commissioned as saying. It remains to be seen how Apple responds. The company has until March 5, 2024, to comply with the DMA. As of this writing, Apple hasn’t responded to Brenton’s comments.

2023-09-27 15:05:00