The European Union (EU) has announced stricter regulations under the Digital Markets Act (DMA) targeting Apple's iPad operating system (iPadOS), aimed at reining in major digital corporations.
This move by the European Commission categorizes iPadOS as a "core" service subject to the DMA, which compels companies to adapt their business practices to foster competition within the online platform landscape.
EU Targets Apple's iPadOS Under the DMA
According to the European Commission's press release, Apple has been designated as a gatekeeper for iPadOS under the DMA, requiring the company to fully comply with the act's obligations within six months.
The Commission had designated Apple as a gatekeeper for its operating system iOS, Safari browser, and App Store on September 5, 2023.
A market investigation was also initiated to assess whether iPadOS, despite not meeting the quantitative thresholds specified in the DMA, serves as a significant gateway for business users to access end-users, warranting its designation as a gatekeeper.
The investigation identified several factors that led to the conclusion that iPadOS constitutes an essential gateway for business users, including Apple's significant increase in business user numbers, surpassing the quantitative threshold significantly.
Additionally, end users are effectively locked into iPadOS due to Apple's expansive ecosystem, which discourages switching to alternative tablet operating systems.
The attractiveness of iPadOS to business users, particularly for specific use cases such as gaming apps, further solidified its designation.
Based on these findings, the Commission determined that iPadOS plays a crucial role as a gateway for business users to reach end users, and Apple holds a well-established and durable position in relation to iPadOS.
Apple is now mandated to fully comply with DMA obligations applicable to iPadOS within the specified timeline.
The DMA is designed to promote fair and competitive digital markets by regulating gatekeepers-large digital platforms that serve as vital intermediaries between business users and consumers.
The Commission's decision is part of its broader effort to ensure designated gatekeepers' compliance with the DMA.
Companies like Alphabet, Amazon, ByteDance, Meta, and Microsoft were designated gatekeepers in September 2023, with a deadline for full compliance with DMA obligations by March 7, 2024.
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Apple's Response
Apple emphasized its commitment to engaging constructively with the European Commission to comply with DMA requirements across all designated services, as per a report from AFP.
The company reaffirmed its dedication to delivering high-quality products and services to European customers while addressing privacy and data security concerns associated with the DMA.
"Today we conclude the first market investigation for qualitative designation under the DMA finding that also iPadOS is an important gateway for businesses to reach consumers. Apple has now six months to comply with the DMA obligations," said Thierry Breton, Commissioner for Internal Market.
"We continue monitoring market developments and will not hesitate to open new investigations should other services below the thresholds present characteristics to be considered important gateways for business users."
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