Apple’s iPad operating system, iPadOS, has been officially designated as a Gatekeeper service under the Digital Markets Act (DMA) by the European Commission. This designation comes after an extensive investigation into the market power held by iPadOS and its compliance with regulations.
In a statement released by the Commission, it emphasized the importance of iPadOS as a gateway for business users to reach end users. It also acknowledged that Apple holds a significant and long-lasting position when it comes to iPadOS. As a result, Apple has been given a six-month deadline to ensure full compliance with DMA obligations specific to iPadOS.
Under the DMA, iPadOS will now have to adhere to a set of rules that provide users in Europe with more freedom, such as the ability to download apps from sources other than the Apple App Store, uninstall preloaded apps, and select preferred default services. Failure to comply with these rules could result in fines of up to 10 percent of Apple’s global revenue, with even higher penalties for repeated infractions.
The investigation conducted by the Commission revealed that iPadOS users are effectively locked into the platform, with a significant number of business users surpassing the gatekeeper threshold. Additionally, the number of end users is expected to rise in the near future. EU antitrust chief Margrethe Vestager highlighted the importance of iPadOS as a gateway for companies to reach their customers, even though it did not meet the thresholds initially set.
While Apple’s iOS, Safari browser, and App Store had already been designated as Gatekeeper services under the DMA in September 2023, the compliance changes made for iOS have not been fully extended to iPadOS. This distinction showcases a significant crack in Apple’s walled garden ecosystem.
The European Commission’s announcement comes just ahead of Apple’s upcoming event where new iPads, including a rumored OLED model, are expected to be unveiled. As Apple works towards meeting the DMA obligations for iPadOS, it will be interesting to see how these changes and potential fines may impact the company’s future strategies and user experience.
FAQ section:
1. What is the Digital Markets Act (DMA)?
The Digital Markets Act (DMA) is a regulation implemented by the European Commission. It aims to create a fair and competitive digital market by regulating certain gatekeeper platforms and their market power.
2. What is iPadOS?
iPadOS is the operating system specifically designed for Apple’s iPad devices. It provides a platform for users to access a range of applications and services.
3. What is the significance of iPadOS being designated as a Gatekeeper service?
The designation of iPadOS as a Gatekeeper service means that it is recognized as a platform with significant market power. It also brings certain obligations and rules that Apple must adhere to in order to ensure a fair digital market.
4. What are the obligations iPadOS now has under the DMA?
iPadOS is now required to comply with rules that grant users more freedom. This includes the ability to download apps from sources other than the Apple App Store, uninstall preloaded apps, and select preferred default services.
5. What are the potential penalties for non-compliance?
Failure to comply with the DMA rules can result in fines of up to 10 percent of Apple’s global revenue. Repeat infractions may lead to even higher penalties.
6. How did the investigation reveal the market power of iPadOS?
The investigation discovered that iPadOS users are effectively locked into the platform. It also found that a significant number of business users surpass the gatekeeper threshold, with an expected rise in the number of end users.
7. How does this designation impact Apple’s walled garden ecosystem?
The distinction between iOS and iPadOS being designated as Gatekeeper services showcases a crack in Apple’s walled garden ecosystem. It highlights that compliance changes made for iOS have not been fully extended to iPadOS.
Related Links:
– European Commission: Competition