The European Commission has recently declared Apple’s iPad operating system, iPadOS, as a Gatekeeper service under its Digital Markets Act (DMA) rules after an extensive investigation lasting almost eight months. This designation places iPadOS under stricter regulation and requires Apple to ensure full compliance with the DMA obligations within the next six months.
According to the Commission, iPadOS serves as a crucial gateway for business users to reach end users, and Apple holds a dominant position with respect to the operating system. As a Gatekeeper service, iPadOS will now have to adhere to a set of rules that allow users in Europe to download apps from sources other than the Apple App Store, remove preloaded apps on iPads, and select default services such as browsers through choice screens. Failure to comply with these rules could lead to substantial fines for Apple, ranging up to 10 percent of its global revenue or 20 percent for repeat violations.
The Commission’s investigation revealed that iPadOS users are significantly bound to the platform, with a significant number of business users exceeding the gatekeeper threshold by a considerable margin. The investigation also highlighted the growing user base of end users on iPadOS, indicating a potential rise in the near future. Margrethe Vestager, the EU antitrust chief, emphasized the importance of iPadOS as a gateway for companies to connect with their customers, despite not meeting the predefined thresholds.
Apple’s iOS mobile operating system, Safari browser, and App Store had already been designated as Gatekeeper services under the DMA in 2023, prompting regional changes within the EU. While iOS has undergone several compliance modifications to meet DMA requirements, the same cannot be said for iPadOS. The recent ruling on iPadOS signifies a significant development in the enforcement of DMA regulations and highlights the tightening scrutiny on Apple’s ecosystem.
The European Commission’s decision regarding iPadOS comes at a critical juncture, just before Apple’s upcoming event on May 7th, where new iPad models are expected to be unveiled. This ruling adds to the existing pressure on Apple’s ecosystem, with the walled garden approach facing continued challenges from regulatory authorities. While certain services like iMessage have been exempted from DMA compliance, the scrutiny on Apple’s operating systems is intensifying, urging the company to make necessary adjustments to comply with regulatory requirements.
The European Commission’s designation of iPadOS as a Gatekeeper service under the DMA underscores the growing regulatory oversight on tech giants and their practices. The decision marks a significant step towards ensuring fair competition and user choice within the digital market landscape, emphasizing the need for companies like Apple to operate within the boundaries of established regulations. As Apple navigates through the compliance process over the coming months, the tech industry will be closely monitoring the implications of this ruling on the future of digital platforms and consumer rights.
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