Equities

EU Targets iPad, Apple to Open App Downloads

EU expands Digital Markets Act to include Apple's iPad, enforcing major tech firms to open up platforms and enhance competition.

By Athena Xu

4/29, 06:15 EDT
Apple Inc.
Amazon.com, Inc.
Alphabet Inc.
Meta Platforms, Inc.
Microsoft Corporation
article-main-img

Key Takeaway

  • EU's Digital Markets Act targets Apple's iPad, demanding changes to allow app downloads outside the App Store within six months.
  • Apple must adjust its iPad OS for greater consumer freedom, including uninstalling preloaded apps, challenging its ecosystem control.
  • The DMA affects major tech firms like Microsoft, Meta, Google, Amazon, and TikTok by curbing anti-competitive practices and promoting digital market openness.

EU Targets Big Tech

The European Union has recently expanded its regulatory oversight under the Digital Markets Act (DMA), adding Apple Inc.'s iPad to a list of Big Tech products that must comply with new rules designed to prevent anti-competitive practices. This inclusion means Apple now has a six-month window to ensure its tablet ecosystem adheres to the DMA's requirements. The company's iOS mobile operating system, App Store, and Safari browser were already under scrutiny by the EU law, highlighting a broader effort to regulate the operations of major technology firms.

Apple's Compliance Challenge

Apple faces significant adjustments to its business operations as a result of the DMA's enforcement. The Cupertino, California-based tech giant is now obligated to modify its iPad operating system to allow for greater consumer freedom. Specifically, the DMA mandates that Apple must enable iPad users to download applications from sources outside of the Apple App Store and allow for the uninstallation of preloaded apps. These changes represent a departure from Apple's traditional ecosystem, which has been tightly controlled to ensure security and a cohesive user experience.

Digital Markets Act Implications

The DMA's implications extend beyond Apple, targeting six of the world's leading technology companies, including Microsoft Corp., Meta Platforms Inc., Alphabet Inc.'s Google, Amazon.com Inc., and ByteDance Ltd.'s TikTok. These firms are identified as digital "gatekeepers," holding significant power over market access and competition. The DMA introduces several prohibitions and obligations aimed at curbing these companies' potential to abuse their dominant positions. Among these are the illegalization of favoring their own services over competitors', the prohibition of combining personal data across services without consent, and restrictions on using data collected from third-party merchants to compete against them. Additionally, the law mandates that users must have the ability to download apps from rival platforms, promoting a more open digital market.