The European Union has initiated two “specification proceedings” against Apple under the Digital Markets Act (DMA), directing the tech giant on complying with interoperability provisions. Failure to meet the Commission’s requirements could result in fines of up to 10% of Apple’s global annual turnover.
The European Commission, responsible for enforcing the DMA on Apple and other gatekeepers, launched its first non-compliance proceeding against Apple in March, focusing on various concerns related to the operation of the App Store. While Apple has made some changes to its compliance plan, the EU is expected to increase its involvement in addressing interoperability issues with Apple.
One area of criticism towards Apple’s approach to the DMA has been its handling of interoperability, especially concerning information screens displayed to iOS users when switching to alternative technologies. The EU’s recent antitrust investigation into Apple’s contactless payment tech also plays a role in shaping the Commission’s approach towards ensuring interoperability in Apple’s DMA compliance.
With the ongoing proceedings, the EU aims to provide specific instructions to Apple on facilitating interoperability for connected devices accessing iOS features and for app developers working on iOS and iPadOS platforms. These platforms are considered “core platform services” under the DMA regulations.
The Commission intends to specify requirements for iOS connectivity features and functionalities, essential for connected devices like smartwatches and headphones. Additionally, it will focus on ensuring a transparent and fair process for handling interoperability requests from developers and third parties.
Apple has been contacted for a response to the EU’s actions under the DMA. The Commission has a six-month timeline to conclude the proceedings, during which preliminary findings will be communicated to Apple, outlining the necessary actions for compliance with the DMA.
The proceedings do not mark the end of the wider non-compliance investigation on Apple, potentially leading to enforcement actions. The Commission’s emphasis is on swift resolution through its regulatory powers, aiming to reshape Apple’s compliance without resorting to hefty penalties.
The early initiation of DMA proceedings has enabled the Commission to escalate interventions, including specification proceedings. Apple has made some adjustments to its compliance plan, such as allowing web distribution for iOS apps and easing restrictions on linking to external offers outside the App Store.
Despite these changes, criticism persists, suggesting that Apple’s compliance efforts may need further enhancements. The outcome of these ongoing developments remains uncertain, emphasizing the dynamic nature of regulatory enforcement in the tech industry.