European Commission designates Apple's iPadOS as a 'gatekeeper' under DMA
EU iPad users will be able to download apps from sources other than App Store
The European Commission has taken a major step in regulating Apple's ecosystem, designating iPadOS as a "gatekeeper" under the bloc's Digital Markets Act (DMA).
The decision, following an eight-month investigation, marks the first market inquiry conducted under the DMA and significantly expands its reach within the tech giant.
The DMA, which came into effect on 7th March, targets major tech companies designated as "gatekeepers." These firms are required to adhere to a set of regulations aimed at fostering competition and preventing monopolistic practices.
The regulations include provisions to prevent companies restricting app developers from directing users to offers outside their app stores, as well as rules prohibiting preferential treatment of their own services.
Following European Commission's decision, iPadOS joins Apple's iOS, Safari browser, and App Store under the DMA umbrella.
The Commission pinpointed the explosive growth of business users on Apple's platform, exceeding expectations elevenfold. Whilst end-user numbers haven't quite hit the threshold, they're projected to rise rapidly, further solidifying iPadOS's dominance.
The investigation by the European Commission revealed a key concern: both businesses and consumers are effectively locked into iPadOS.
Apple's extensive ecosystem discourages users from switching to competing tablet operating systems, while the sheer size of the user base and its importance for specific applications like gaming, make it an essential platform for businesses.
This "gatekeeper" status under the DMA translates to stricter regulations. Apple must now ensure iPadOS compliance with various rules, empowering European users.
Users will gain the right to download apps from sources outside the tightly controlled App Store, uninstall pre-installed apps they don't want, and choose their default services like browsers.
This decision marks a significant development in the ongoing battle between the EU and Apple.
While iMessage remains exempt from DMA compliance, the ruling on iPadOS represents another step towards a more open and competitive digital market within the EU.
"We continue monitoring market developments and will not hesitate to open new investigations should other services below the thresholds present characteristics to be considered important gateways for business users," Commissioner for the Internal Market Thierry Breton said.
Apple has six months to fully comply with DMA regulations for iPadOS. Failure to do so could result in significant fines reaching 10% of global revenue, with repeat offences incurring even steeper penalties of up to 20%.
The development comes just ahead of Apple's highly anticipated May 7th event, where new iPad models, including a rumoured OLED version, are expected to be unveiled.
Apple, in response to the announcement, has committed to "constructively engage" with the Commission to ensure compliance across all designated services.
"Our focus will remain on delivering the very best products and services to our European customers, while mitigating the new privacy and data security risks the DMA poses for our users," the company said.