Brussels, Belgium – The European Commission recently concluded an extensive investigation into Apple’s iPad operating system, determining that it holds significant market power deserving stricter regulation. This decision marks a significant development under the Digital Markets Act (DMA) rules in Europe.
According to the Commission, the iPadOS has been designated as a Gatekeeper service, highlighting its pivotal role as a gateway for business users to reach their intended audience. The Commission’s statement emphasized Apple’s dominant position concerning iPadOS and outlined a six-month timeline for the tech giant to comply fully with DMA obligations.
The DMA, which took effect on March 7th, imposes a set of rules aiming to enhance user choice within the digital market. For iPadOS, this means adhering to regulations allowing users to download apps outside the Apple App Store, remove preloaded apps, and select default services such as browsers through choice screens. Failure to comply could result in significant fines for Apple, including penalties up to 10 percent of its global revenue or up to 20 percent for repeated violations.
The Commission’s investigation revealed that iPadOS users are largely constrained within the platform, particularly business users exceeding the gatekeeper threshold significantly. The findings also highlighted the platform’s importance as a gateway for companies to connect with their customers, underscoring its influence within the digital ecosystem.
EU antitrust chief Margrethe Vestager emphasized the critical role played by iPadOS in enabling companies to reach their target audience, despite not meeting specific quantifiable thresholds. The Commission’s move to designate iPadOS as a Gatekeeper service reflects a broader effort to regulate tech giants and promote fair competition within the digital landscape.
In response to the Commission’s decision, Apple now faces the task of ensuring compliance with DMA rules for iPadOS, signaling a potential shift in how tech companies operate within the European market. The implications of this designation could have far-reaching effects on how users interact with the iPad operating system and the broader implications for digital competition in Europe.