The tech giant Apple recently deferred the rollout of its flagship artificial intelligence-based services in the European Union, citing uncertainties arising from the bloc's tough new rules to curb the market dominance of big tech companies. Apple's decision to stall the launch of key AI features like ‘Apple Intelligence' and enhancements to existing services is a clear indication of how the EU's Digital Markets Act is shaking up the strategies of even the world's most valuable companies.
The Digital Markets Act, in effect since 2022, classifies tech giants meeting certain criteria as ‘gatekeepers' that must comply with specific obligations aimed at fostering more competition in the digital sphere. One such requirement is interoperability – gatekeepers may have to ensure that their messaging and other services can connect with similar offerings from smaller rivals. Apple is concerned this could compromise user security and privacy if competitors are able to peek under the hood of its AI systems.
While the interoperability rule aims to level the playing field for startups, its potential implications for products are triggering pushback even from influential firms like Apple. Nevertheless, the EU's competition chief was blunt in asserting the priority of open competition over unilateral commercial interests in the bloc. With fines of up to 10% of annual global turnover for non-compliance, regulatory tensions with big tech are likely to intensify as more Digital Markets Act provisions kick in. How Apple and its competitors can balance innovation, control and openness within the EU's ambitious regulatory framework remains uncertain – but one thing is clear, the age of unfettered tech expansion is definitively over in Europe.
