EU Designates Apple's iPadOS as 'Core' Service Under Digital Markets Act

The European Union has designated Apple's iPadOS, the operating system for iPads, as a 'core' service under the Digital Markets Act (DMA), requiring the company to comply with new rules aimed at encouraging competition and interoperability between online platforms. The European Commission's investigation found that iPadOS "presents the features of a gatekeeper," similar to Apple's iOS for iPhones, which was designated as a gatekeeper last September.

As a result, Apple has been given a six-month deadline to make iPadOS compliant with the DMA, which could lead to changes such as the introduction of alternative app marketplaces, web distribution, and alternative browsers on the iPad platform. The DMA is a regulatory tool that allows the EU to address the realities of digital markets, and companies that do not adhere to the new rules risk facing EU investigations, substantial fines, and the imposition of "behavioral or structural remedies."

The EU's decision to include iPadOS under the DMA is a loss for Apple, which has challenged the designation of certain services to the EU's General Court. The DMA also targets other major tech firms, such as Microsoft, Meta, Google, and Amazon, with obligations to prevent them from abusing their dominance in the digital market.

Why this matters: The EU's designation of iPadOS as a core service under the Digital Markets Act represents a significant step in the bloc's efforts to rein in the power of big tech companies and promote fair competition in the digital market. The move could have far-reaching implications for how Apple operates its iPad ecosystem in Europe and potentially set a precedent for similar regulations in other regions.

Apple has stated it will continue to engage with the European Commission to comply with the DMA across all designated services. The company has six months to ensure iPadOS is compliant with the DMA, which could force significant changes in how Apple operates the tablet platform in the EU. The European Commission's competition commissioner, Margrethe Vestager, emphasized that the decision will "ensure fairness and competition are preserved, despite iPadOS not meeting all the thresholds for being earmarked."

Key Takeaways

• EU designates iPadOS as 'core' service under Digital Markets Act (DMA).
• Apple given 6-month deadline to comply with DMA, potentially leading to changes.
• DMA aims to promote competition and interoperability in digital markets.
• EU's decision is a loss for Apple, which challenged similar designations.
• DMA targets major tech firms, requiring them to prevent abuse of dominance.