Key Points:
- The European Commission designates Apple’s iPad operating system, iPadOS, as a gatekeeper under the Digital Markets Act.
- The decision follows the Commission’s investigation into the platform’s influence on business users and access to Apple’s ecosystem.
- iPadOS joins iOS, Safari, and the App Store as designated gatekeepers, expanding the scope of regulatory oversight on Apple’s ecosystem.
- Apple’s widespread adoption among business users and its large user base contribute to the platform’s designation as a gatekeeper.
In a significant move, the European Commission has designated Apple’s operating system for iPads, iPadOS, as a gatekeeper under the Digital Markets Act (DMA). This decision underscores the platform’s crucial role for business users and its influence in controlling access to Apple’s ecosystem.
The designation of iPadOS as a gatekeeper follows an investigation initiated by the European Commission in September last year. This move aligns with the EU’s efforts to enforce stricter regulations on tech giants to promote fair competition and protect consumer interests. Apple’s operating system, iOS, browser Safari, and App Store were previously labeled as gatekeepers under the DMA. iPadOS further expands the scope of regulatory oversight on Apple’s ecosystem.
EU antitrust chief Margrethe Vestager emphasized the importance of iPadOS as a gateway for many companies to reach their customers. Despite not meeting certain thresholds, the Commission found that iPadOS significantly facilitates business transactions and communication.
The Commission’s investigation revealed that Apple’s business user numbers exceeded the quantitative threshold significantly, highlighting the platform’s widespread adoption among enterprises. Additionally, the ecosystem’s large user base, including both business and end users, contributes to the lock-in effect, where users are compelled to remain within Apple’s ecosystem due to its seamless integration and extensive features.
As part of the DMA compliance process, Apple has six months to adhere to the regulatory requirements set forth by the European Commission. The tech giant has committed to engaging constructively with the Commission to ensure compliance across all designated services.
Failure to comply with the DMA regulations could result in substantial fines, with companies facing penalties of up to 10% of their global annual turnover. This underscores the Commission’s intent to enforce strict adherence to the rules and prevent anti-competitive practices within the digital market.
