Apple receives warning from EU over opening iPhone operating system – The Mercury News

Apple Inc. has been warned by the European Union against opening up its tightly protected iPhone and iPad operating systems to competing technologies. Otherwise, it risks heavy fines under crucial antitrust law within the digital sector.

EU regulators have announced that Apple could have to comply with strict recent laws to make sure full functionality of operating systems with other technologies as a part of the bloc's Digital Markets Act. The Brussels-based authority gave the corporate six months to comply or face future penalties.

Although the announcement remains to be removed from a proper investigation, the EU desires to force Apple to revamp its services in order that competing firms can access the iPhone and iPad operating systems.

“Today, for the first time, we are using specification processes under the DMA to help Apple effectively meet its interoperability obligations,” said EU Competition Commissioner Margrethe Vestager in a press release. “Effective interoperability, for example with smartphones and their operating systems, plays an important role in this.”

Apple shares rose 1.6 percent to $224.25 in premarket trading with 164,801 shares. The EU announcement confirms an earlier report by Bloomberg.

One of the goals of the DMA is to be certain that other developers have access to necessary Apple features, similar to Siri voice commands and the payment chip.

The EU could later determine to launch a proper investigation if Apple fails to comply with the DMA, which could ultimately result in heavy fines of as much as 10% of annual global turnover. In parallel, an investigation into the App Store rules for developers is already underway, which could also result in heavy fines.

Earlier this month, Apple announced the newest version of its flagship device, the iPhone 16, betting that it could entice consumers with modest hardware upgrades and not-yet-available AI technology.

But in June, the US giant announced that certain features – including Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing – wouldn’t be allowed to be introduced within the EU since the DMA requirements for operating systems require them to work with third-party apps.

___

©2024 Bloomberg LP Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.

Originally published:

image credit : www.mercurynews.com