While the EC is seeking constructive dialogue with Apple, its enforcement of digital markets rules looks unlikely to soften with the arrival of new Commissioners
Specification proceedings aim to help ensure Apple meets interoperability obligations under the DMA
On 19 September 2024, the EC launched two "specification proceedings" intended to help Apple to comply with its interoperability obligations under the Digital Markets Act (DMA). Under the act, Apple must provide free and effective interoperability to third party developers and businesses with hardware and software features that are controlled by the Apple operating systems iOS and iPadOS – both of which have been designated as ‘core platform services’. The first proceeding focuses on a number of iOS connectivity features and functionalities, which are mostly used by connected devices such as smartwatches and VR headsets. As companies offering connected devices rely on interoperability with smartphones and their operating systems (e.g. iOS) to enable notifications, device pairing and more, the EC is therefore keen to see Apple provide this effectively. The second proceeding focuses on Apple’s handling of interoperability requests from third parties and developers for iOS and iPadOS. The EC is demanding that this request process be timely, transparent and fair so that all developers have a clear and effective path to interoperability and are enabled to innovate.
The EC will explain its required measures for Apple – but reserves the right to impose a decision establishing non-compliance
The EC has stated that it will conclude its proceedings within six months – i.e. by 19 March 2025. Over the course of the proceedings, the EC will communicate its preliminary findings to Apple, outlining the measures that the tech firm should take to ensure it complies with the interoperability obligation outlined in the DMA. A non-confidential summary of these preliminary findings and suggested measures will also be issued publicly to offer third parties the opportunity to comment. Beyond these proceedings, the EC retains the ability to adopt a decision determining that Apple has not been compliant with any of the obligations imposed on ‘gatekeepers’ by the DMA. This could potentially lead to the EC imposing fines or periodic penalty payments on Apple.
Ahead of the changing Commission, a change in the enforcement of the DMA on Apple looks unlikely
The goal of the DMA is to ensure contestable and fair digital markets by keeping large online platforms – or gatekeepers – in check. On 6 September 2023, the EC made its first designations under the act, identifying the App Store, Safari and iOS as core platform services (alongside 19 other services from five additional gatekeepers). On 29 April 2024, the EC then designated iPadOS as a core platform service. Apple now becomes the first gatekeeper to be subject to specification proceedings, formalising its ongoing regulatory engagement with the EC. According to Margarethe Vestager (EVP and Commissioner for Competition, EC), “constructive dialogue” will guide Apple towards effective compliance. However, whether this heralds any change in – perhaps even a softer – approach to DMA enforcement currently appears unlikely. With the incoming Commission, Vestager is set to be replaced by Teresa Ribera Rodrídguez (EVP-designate for Clean, Just and Competitive Transition), whose mission letter calls for the continuing robust enforcement of the DMA. One area in which we may see a difference between Commissioners is consolidation, with Ribera signposting a new era in how Brussels polices mergers and indicating sympathy for the view that European companies need to scale up to compete with foreign rivals.
