Apple Plans to Challenge EU iPadOS Ruling as ‘Gatekeeper’ Status Sparks Fears of $38B Fine
Apple is facing the potential of significant changes in how it operates in the European Union after the European Commission declared its tablet operating system, iPadOS, as a digital “gatekeeper.” These new regulations aim to level the playing field in the digital market and ensure fair competition among tech giants like Apple, Meta, Amazon, Microsoft, Alphabet, and TikTok. The Commission has given Apple six months to ensure full compliance with the stringent rules.
The decision to designate iPadOS as a gatekeeper follows a thorough investigation into whether the operating system meets the criteria under the Digital Markets Act (DMA). This move adds iPadOS to the list of other Apple platforms already deemed gatekeepers, such as the Safari web browser, iOS operating system, and the App Store. The Commission believes that Apple’s size and user base lock both businesses and end-users into its ecosystem, making it challenging for competitors to enter the market.
If Apple fails to comply with the DMA regulations, it could face fines as high as 10% of its global annual turnover. Based on Apple’s revenue from the 2023 financial year, this could amount to approximately $38 billion. Apple has stated that it will work with the European Commission to ensure all designated services comply with the DMA while continuing to focus on providing the best products and services for its users.
EU Commissioner Thierry Breton noted that the decision to designate iPadOS as a gatekeeper based on qualitative factors rather than numerical thresholds marks a significant step in regulating digital platforms. The EU is also investigating other platforms, including Elon Musk’s X, ByteDance, and Booking, to determine if they fall under the scope of the DMA. A decision on these platforms is expected by May 13.
European Commission executive vice-president Margrethe Vestager emphasized the importance of preserving fairness and competition on digital platforms like iPadOS. The EU’s goal is to ensure that all companies have equal opportunities to reach their customers and operate in a competitive market. With the enforcement of the DMA regulations, tech giants like Apple will have to adjust their practices to comply with the new rules and promote fair competition in the digital market.
