Reuters reports that the European Commission, which enforces competition laws for the EU, announced this review. It comes after Apple submitted a report explaining how iPadOS meets these rules, known as the Digital Markets Act (DMA). In April, the Commission had identified iPadOS as an essential platform for businesses to connect with customers, making it subject to these regulations.
The Commission stated that it will examine whether the actions Apple has taken for iPadOS effectively meet the obligations set by the DMA. Additionally, they will take into account feedback from “interested stakeholders”, or other parties involved, to help make this decision.
The Digital Markets Act (DMA), which became law earlier this year, places certain requirements on Apple and other big tech companies. For instance, it mandates that Apple must allow users to choose their default web browser on iPads, enable other app stores on its operating system, and ensure that accessories like headphones and digital pens can use iPadOS features. If Apple does not comply with these DMA rules, it could face significant penalties – potentially up to 10% of its global yearly revenue.
For Apple’s 2023 revenue of $385.70 billion, a 10% penalty adds up to almost $40 billion. Not exactly an easy to swallow sum, even for a giant like Apple.
Earlier this year, Apple and several other tech giants were required to make significant changes to their systems to align with new EU rules. Under the Digital Markets Act (DMA), six major companies – Apple, Meta, Microsoft, Amazon, Google, and ByteDance (TikTok’s parent company) – were designated as “gatekeepers,” which means they must adjust certain practices to ensure fair competition and access for other businesses within the European Union.
Apple’s recent changes in response to EU regulations have led to the introduction of third-party app stores on iPhones, with the first examples, like AltStore PAL, now available. Users in the EU with iOS 17.4 or later can access this App Store alternative for an annual fee of €1.50 plus tax. This fee includes coverage for Apple’s Core Technology Fee (CTF), a requirement for installing third-party app stores. However, users must go through several warning prompts from Apple, confirming multiple times, before they can proceed with installation. A bit of a bummer, but it’s not an unexpected move from Apple.