The European Union (EU) wants to break down the wall surrounding Apple's proverbial garden, as new laws targeting Big Tech may force the company to support third-party app stores on its devices.
The EU's Digital Markets Act (DMA) demands a lot. It aims to level the playing field for internet services and is the latest in a global wave of regulation to hit the tech sector.
"The DMA will change the digital landscape profoundly," said Executive Vice pPresident Margrethe Vestager. "A small number of large companies hold significant market power in their hands. Gatekeepers enjoying an entrenched position in digital markets will have to show that they are competing fairly."
The Act will require a lot from Apple. "If you have an iPhone, you should be able to download apps not just from the App Store, but from other app stores or from the internet," Gerard de Graaf, EU director of the Silicon Valley office, told Wired.
In other words, Big Tech will be forced to open up platforms.
De Graff has opened an EU office in San Francisco to meet with affected tech firms. Apple continues to face action on the matter of App Store payments and this is more in the same direction.
The law may even force Apple to make changes in Messages, FaceTime, and Siri. It even seems possible it may also be forbidden from shipping preloaded apps and may be forced to share data with third-party firms.
Apple has previously expressed its fear that some of the act's provisions may create "unnecessary privacy and security vulnerabilities" for its customers. But it appears the EU turned a tin ear to those pleas.
It also seems reasonable to anticipate legal challenges to sections of these new rules and how they are applied, particularly where there is an inconsistency between the requirements of the DMA and other existing statutes. After all, what's more important, customer privacy or advertising data sharing? Given the EU has rules on both, which law comes first? GDPR or DMA?
Bits of this action will likely run for a while.
The DMA went into effect on Nov. 1, but its requirements are not yet effective. Tech firms now have until May 2023 to begin to adjust their business models and may have to put changes into effect by March 6, 2024.
It is also important to note that some of the more advanced requirements of the DMA, such as video calling between different platforms, won't need to be implemented until 2026, at the earliest.
In the meantime, all of the companies affected by the DMA will no doubt do everything possible to mitigate elements of the act. Even then, one early impact on certain parts of Apple's business suggests iOS 17 may be a weird upgrade that tears existing apps and services apart, rather than improving them.
That's going to mean....
I consider it likely we will see the introduction of a range of new choice-based application installations ("Do you want to install Safari, Chrome, Edge, Firefox, or Duck Duck Go on your new iPhone?")
Watch those choice boxes as these will become more important further down the line as it is likely these will propagate across every operating system, as noted by Amelia Fletcher, professor of competition policy at the University of East Anglia.
Most of us will quickly develop "choice fatigue."
Apple isn't the only company in the regulatory cross hairs. Amazon, Google, Meta, and others will also need to change. The penalties are significant, too - fines of up to 10% of a company's total annual turnover can be imposed, along with hefty fines and additional financial penalties.
Businesses can also be forced to sell parts of their business, or denied access to new business sectors, the EU explains here.
The idea behind the DMA is to force major internet firms - "gatekeepers" - to open to competition, and to ensure larger platforms are obliged to act as responsible corporate citizens. Companies must be of significant (