European Union to tell Apple how to open up to rivals under DMA rules

The European Union antitrust regulators launched proceedings on Thursday to ensure that Apple complies with landmark rules requiring it to open up its closed ecosystem to rivals or risk a possible hefty fine. Under the so-called specification proceedings, the European Commission will spell out what Apple has to do to abide by the Digital Markets Act (DMA), which came into effect last year. However, if Apple fails to comply with the law even after the handholding, it could face fines of up to 10 per cent of its annual turnover worldwide.

"Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue," EU antitrust chief Margrethe Vestager said in a statement.

The EU competition enforcer said the first proceeding targets iOS connectivity features and functionalities for smartwatches, headphones, virtual reality headsets and other internet-connected devices. "The Commission intends to specify how Apple will provide effective interoperability with functionalities such as notifications, device pairing and connectivity," it said.

The second proceeding concerns how Apple addresses interoperability requests submitted by developers and third parties for iOS and iPadOS. Both processes will be wrapped up within six months. "It is crucial that the request process is transparent, timely, and fair so that all developers have an effective and predictable path to interoperability and are enabled to innovate," the Commission said.

The proceedings come close on the heels of another long-running antitrust investigation where Apple was found promoting its contactless payment technology by not opening up its ecosystem to other players. The investigation, however, settled after Apple committed to implement changes, including creating a system to support developers of rival mobile wallets to offer contactless payments in the EU.

Apple said it will continue to work constructively with the Commission but also warned of the risks. "Undermining the protections we've built over time would put European consumers at risk, giving bad actors more ways to access their devices and data," it said in a statement.

Written with inputs from Reuters