The European Commission recently concluded an investigation into Apple’s iPadOS, determining that it holds significant market power and warrants stricter regulation. As a result, iPadOS has been designated as a Gatekeeper service under the flagship Digital Markets Act (DMA) rules.
Implications of the Decision
This designation means that Apple will now have to ensure full compliance with a broad range of rules under the DMA. These rules include allowing users in Europe to download apps from sources outside the Apple App Store, uninstall preloaded apps on iPads, and select default services such as browsers from choice screens.
Failure to comply with the DMA rules could lead to significant financial penalties for Apple. The company could face fines of up to 10 percent of its global revenue, with even higher penalties for repeat infractions. This decision is a significant blow to Apple’s control over its operating systems and the App Store ecosystem.
The Commission’s investigation found that iPadOS users are effectively locked into the platform, particularly business users. The number of business users on iPadOS exceeded the gatekeeper threshold significantly, indicating a lack of competition and choice for users. This decision aims to increase competition and choice for users in the European market.
While Apple’s iOS mobile operating system, Safari browser, and App Store were already designated as Gatekeeper services under the DMA, the same changes have not been extended to iPadOS. This decision highlights the differences between the two platforms and the need for Apple to address concerns around competition and choice in the iPad ecosystem.
Despite the ruling on iPadOS, Apple has not yet released a statement on how it plans to comply with the DMA rules. The company is expected to make changes to the iPadOS platform to meet the requirements set out by the European Commission. This decision comes at a crucial time, just before Apple’s next event where new iPads are expected to be announced.
The European Commission’s decision to designate Apple’s iPadOS as a Gatekeeper service under the DMA has significant implications for the company and its users. It highlights the need for increased competition and choice in the operating system and app marketplace. Apple will need to make changes to ensure compliance with the DMA rules and address concerns around its dominance in the market.
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