Apple has now been ordered to open up its famed ‘walled garden’ — the entire iOS/iPadOS/MacOS ecosystem — to its rivals in a landmark new order by competition watchdogs of the European Commission. This decision, announced on Wednesday, is part of the sweeping Digital Markets Act (DMA), a set of rules designed to curb the market power of Big Tech firms.
As a first step, Apple is required to provide necessary technical know-how to third party hardware makers, allowing them to seamlessly connect these third-party devices to Apple hardware, as seamless as its own accessories connect. The Commission mandates Apple to offer clear documentation and a structured process for app developers who seek to obtain interoperability with iPhone and iPad features.
Additionally, the Commission is expecting a more predictable timeline for interoperability requests and timely updates (amongst others) ensuring that developers are not at a disadvantage compared to Apple’s own services. These measures, according to EU antitrust chief Teresa Ribera, aim to increase competition and ensure consumers have more choices in the growing market for connected devices.
As is known, currently Apple’s AirPods, Apple Watch, and other first-party accessories have exclusive access to features like automatic pairing, AirDrop file sharing, and real-time notifications. With the EU’s ruling, competing brands such as Samsung, Bose, Garmin, and Fitbit could develop devices that integrate with iPhones, which could further reduce Apple’s competitive edge in the accessory market. This means that consumers will no longer be confined to Apple’s proprietary ecosystem, and will be able to pair their iPhones with smartwatches and headphones from various manufacturers without compatibility issues.
“Today’s decisions mark the first time the Commission outlines concrete measures for a gatekeeper to comply with the Digital Markets Act. Companies operating in the EU, irrespective of their place of incorporation, must comply with EU rules, including the Digital Markets Act. With these decision, we are simply implementing the law, and providing regulatory certainty both to Apple and to developers. Effective interoperability for third-party connected devices is an important step towards opening Apple’s ecosystem. This will lead to a better choice for consumers in the fast-growing market for innovative connected devices. Also, from now on, developers will enjoy more transparency as to how their interoperability requests are handled by Apple. Today moves us closer to ensuring a level playing field in Europe, thanks to the rule of law,” Teresa Ribera, Executive VP for Clean, Just and Competitive Transition, commented in an official statement.
To absolutely nobody’s surprise, the Cupertino-headquartered Apple has strongly opposed the European Commission’s ruling, arguing that the new requirements will hinder innovation and compromise user experience. The company has voiced concerns that these regulations force Apple to share proprietary features with competitors without fair compensation, creating an unfair playing field. “Today’s decisions wrap us in red tape, slowing down Apple’s ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don’t have to play by the same rules. It’s bad for our products and for our European users. We will continue to work with the European Commission to help them understand our concerns on behalf of our users,” Apple said.
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