EU antitrust regulators warned Apple on Thursday to open up its fiercely guarded proprietary software to rivals or risk hefty fines.
The European Commission has launched so-called specification procedures that will detail what Apple must do to comply with the Digital Markets Act (DMA), the tough new law aimed at preventing tech giants from abusing their market share.
While the move is not a formal investigation, the stepped-up enforcement could disrupt Apple’s lucrative business model by targeting its iOS connectivity features for smartwatches, headphones, virtual reality headsets and other internet-connected devices.
The Brussels-based regulator will specify how Apple will provide effective interoperability with features such as notifications, device pairing and connectivity.
A second procedure relates to how Apple addresses interoperability requests submitted by developers and third parties for iOS and iPadOS, and the company is instructed to ensure a transparent, timely and fair process.
If Apple fails to comply within six months, the EU could begin imposing fines.
The DMA stipulates that technology companies that fail to comply with the law risk receiving fines equivalent to 10% of their annual global turnover.
Last year, Apple generated $383.93 billion in total revenue in Europe, leaving the Cupertino, California-based giant on the hook for more than $38 billion if it fails to comply with regulator demands.
“Today is the first time that we have used specification procedures under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue,” EU Executive Vice President Margrethe Vestager said in a statement.
“We are focused on ensuring fair and open digital markets. Effective interoperability, for example with smartphones and their operating systems, plays an important role in this,” Vestager added.
Apple has steadfastly refused to let rivals peek at its iOS source code, which allows the company to control the development, distribution and licensing of the software that powers its devices.
Developers who want to put their apps on Apple devices must use tools provided by Apple, such as Xcode and Swift, but must comply with Apple’s guidelines.
Apple said it would continue to work constructively with the Commission, but also warned of the risks.
“Undermining the protections we have built over time would put European consumers at risk, giving bad actors more ways to access their devices and data,” it said in a statement.
The Post has requested comment from Apple.
Earlier this month, Apple launched the new iPhone16 that features the latest version of its iOS, which offers a much-touted suite of artificial intelligence technology.
However, Apple said it will not launch certain features, including Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing, in the EU due to DMA requirements on operating systems that must work with third-party apps.
Tech giants Apple, Google, Amazon, Facebook and Microsoft – which the DMA calls “gatekeepers” – have faced an EU crackdown over alleged anti-competitive behaviour.
In March, the EU fined Apple around $2 billion for allegedly restricting competition by preventing developers from directing users to alternative payment options outside the App Store.
Earlier this year, Meta, the parent company of Facebook and Instagram, was accused of violating the DMA by failing to give users the option to protect their personal data from advertisers.
