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The European Commission said on Monday that Apple’s tablet OS is considered a digital “gatekeeper” under the European Union’s strict new technology rules, a development that could force Apple to change the way it operates in the region. It was announced that a large fine could be imposed. Alleged compliance violations as the bloc ramps up pressure on tech giants to get along with smaller rivals.
The EU has targeted Apple’s iPad as part of new DMA rules.
important facts
The committee said both businesses and end users are “locked in” to Apple’s iPadOS ecosystem due to its size and user base, which the company is using to discourage users from switching to competitors. The company said it has given Apple six months to ensure full compliance.
The landmark rule, which took effect on March 7, seeks to level the digital playing field by removing such “gates” from the world’s largest technology companies, including Apple, Meta, Amazon, Microsoft, Alphabet, and TikTok. It imposes strict guardrails on platforms designated as “keepers.” It makes the market fairer and violations can result in fines of as much as 10% of global annual turnover.
The decision comes after the European Commission designated three of Apple’s other platforms as gatekeepers in September: the Safari web browser, the iOS operating system, and the App Store, making iPadOS subject to the system. It follows a months-long investigation into whether to do so.
Apple said in a statement that it “continues to engage constructively with the European Commission” to ensure all designated services are DMA compliant, and that it “continues to engage constructively with the European Commission” to “relax new privacy policies.” However, we will continue to focus on providing the best products and services.” Data security risks that DMA poses to users. ”
big number
38 billion dollars. This is roughly the same amount of fines Apple could be fined for DMA violations, which could be up to 10% of annual revenue, according to the company’s 2023 fiscal year report. According to the report, Apple generated revenue of $383.3 billion in 2023.
tangent
EU Commissioner Thierry Breton said the iPadOS investigation is the first time the EU has determined whether a platform can be considered a gatekeeper based on qualitative factors, rather than simply trying to break through a numerical threshold of users. He said it would be. “We continue to monitor market developments and will not hesitate to initiate new investigations if other services below the threshold exhibit characteristics that would make them important gateways for business users.” said.
Points to note
The commission said it is investigating whether other platforms fall within the scope of the DMA. He cited Elon Musk’s X, ByteDance, and Booking as platforms he is currently considering. The European Commission said a decision would be taken “at the latest” by May 13.
important quotes
“Our market research shows that iPadOS has become a critical gateway that many businesses rely on to access their customers, despite not meeting standards,” said the European Commission’s executive vice president. said Committee Chair and Competition Emperor Margrethe Vestager. “Today’s decision ensures fairness and competition on this platform, in addition to the 22 other services we designated last September.”
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