EU tells Apple: Open access to operating systems to rivals and developers

iPhone maker could be fined up to 10% of its sales if it fails to comply

This month, Apple introduced four devices – the base iPhone 16, 16 Plus, 16 Pro and 16 Pro Max – at its annual event. Bloomberg

The EU has told iPhone maker Apple to allow access to its tightly controlled iPhone and iPad operating systems to rival companies and third-party developers or possibly face anti-trust fines.

The EU has given the Californian company a six-month deadline to resolve these issues. If Apple fails to comply, it could be fined up to 10 per cent of its annual global revenue, as stipulated by the Digital Markets Act that intends to promote fair competition in the digital market.

“Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue,” Margrethe Vestager, EU’s executive vice president in charge of competition policy, said in a statement on Thursday.

“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.”

Apple shares jumped 3.80 per cent to $229.07 at 2.40pm New York time on Thursday.

The EU said it has started two specification proceedings to assist Apple in complying with its obligations under the Digital Markets Act.

The first focuses on several operating system connectivity features and functionalities, while the second focuses on the process Apple has set up to address interoperability requests submitted by developers and third parties.

This month, Apple introduced four new devices – the base iPhone 16, 16 Plus, 16 Pro and 16 Pro Max – at its annual event. The devices are powered by Apple Intelligence, the company's take on generative AI.

But in June, the company said that various features, including Apple Intelligence, would be restricted from the EU market due to the Digital Markets Act’s requirements for operating systems to be compatible with third-party apps.

Apple has been the subject of numerous lawsuits and has been involved in anti-trust investigations in Japan, South Korea and Europe.

In March, the company said it would appeal against a $2 billion fine from the European Commission, stemming from an accusation that Apple unfairly shut out music-streaming rivals on its platforms, most notably Spotify.