Apple has postponed the release of several advanced technologies in Europe, citing regulatory challenges associated with the EU’s Digital Markets Act (DMA). The company argues that compliance with the DMA could compromise the security of its products, reports Bloomberg.
The products affected include Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing. According to Apple, the DMA’s requirements would force the company to weaken critical security features, potentially undermining user privacy and security for millions of EU users.
Digital Markets Act Blocks AI Features Rollout
The Digital Markets Act aims to regulate large technology companies and promote fair competition. It includes rules that prevent tech giants from favoring their own services and mandate that they allow users to download apps from third-party platforms.
The Digital Markets Act (DMA) is integral to the EU’s strategy for a more competitive and open digital economy. It seeks to curb anti-competitive practices and promote a level playing field, thereby enhancing consumer choice and facilitating the entry of new market players. The act stipulates substantial penalties for non-compliance, potentially up to 10% of a company’s global annual turnover. Apple argues that such regulations could create vulnerabilities and elevate security risks for users.
Apple confirmed to Bloomberg that the affected technologies will not be available in the EU this year. The company stressed the importance of maintaining product security and stated that it cannot release features that don’t meet its stringent standards. This move underscores ongoing tensions between regulatory authorities and major tech firms regarding compliance and security.
Apple Intelligence, a key highlight of the company’s WWDC 2024 Conference, is an AI tool designed for tasks such as summarizing text, generating original images, and retrieving data.
The decision to withhold this and other features means consumers in all 27 EU member states will be unable to access them for now. The software’s launch will proceed elsewhere, limited to select Apple devices and in American English.
Ongoing Disputes
Alongside the technological delays, Apple is also facing accusations of market abuse from EU regulators. The company, along with Google and Meta, is under scrutiny for potential violations of the DMA. Expected actions include a formal warning from the EU, particularly regarding allegations that Apple restricts apps from providing links to cheaper subscription options on the web.
Earlier this year, Brussels regulators imposed a fine of 1.8 billion euros ($1.9 billion) on Apple under traditional antitrust laws. This penalty highlights the broader regulatory pressures Apple and other tech giants are encountering in the EU.
Last Updated on November 7, 2024 3:49 pm CET
