Sep 19, 2024

Vestager's Last Stand

One last call on Apple to change stuff before the European Commission changes?

When this news first came across the wire, it was confusing. A warning? Or else what? What is the EU even asking for here with a demand for Apple to "open up" their operating systems? How is this any different than the endless DMA back-and-forths? But Bloomberg quickly fleshed the story out a bit, notably including this:

“Today is the first time we use specification proceedings under the DMA to guide Apple towards effective compliance with its interoperability obligations,” EU competition chief Margrethe Vestager said in a statement. “Effective interoperability, for example with smartphones and their operating systems, plays an important role in this.”

In other words, this feels a lot like one last push by Vestager to get Apple to comply with the continually vague "opening up" things they're looking for – but really, it also feels like one last time in the spotlight and in the headlines for Vestager on this high-profile issue, as she has about a month remaining on her tenure.

Not only that, but it's starting to sound like the EU is going to be taking a different approach to regulation – or at least looking at if they should – following Mario Draghi's competition report, which was fairly damning of the ways the body currently operates and approaches regulation, among other things.

Recent stories on the forthcoming and proposed changes that European Commission president Ursula von der Leyen is implementing for her new term both cite the Draghi report as having influence on new appointments and marching orders. You may have noticed that the most showboaty of the commissioners resigned in the most showboaty way possible the other day...

Now, this doesn't mean that the EU/EC is going to drop any of the current proceedings against Apple or Big Tech, but it could signal a change in tone. And perhaps a new willingness to talk/think through how best to remedy such things. Or perhaps not – while, as an American, many things the commission does with regard to tech seems foolish and self-defeating to me, it's worth noting that at least some people in Europe seem to appreciate the approach – but the timing of such news sure feels like each of these things are related.

Also, this announcement has absolutely no teeth:

Apple Inc. has been warned by the European Union to open up its highly guarded iPhone and iPad operating systems to rival technologies, or eventually risk significant fines under its flagship digital antitrust rules.

EU watchdogs announced under the bloc’s Digital Markets Act that Apple must step into line with strict new laws on making operating systems fully functional with other technologies. The Brussels-based authority gave the company six months to comply, or face the threat of future penalties.

While the announcement is a step shy of being a formal investigation, the EU aims to compel Apple to re-engineer its services to allow rival companies to access the iPhone’s and iPad operating systems.

It's a warning that Apple had better do something to make sure iOS and iPadOS are more "open" and "fully functional" with other "technologies" in the next six months or else! Somehow, they've managed to make demands that are even more vague than the ones they're currently making around the App Store. And again, why is this any different? My guess is that this is more about Apple working with other technologies on core iPhone components and services versus developers leveraging the App Store, but who knows. It's just not clear at all.

One thing that is clear: by March 2025, when the six month clock runs out on this warning, the European Commission is going to look quite different. We'll see if that matters.

One more thing: I wouldn't say that Apple isn't taking this seriously, but here we got barely two sentences in response:

Cupertino, California-based Apple said it’s created ways for developers to request additional interoperability with iPhone and iPad operating systems, while protecting users’ security. Undermining protections built into its systems over time would put European consumers at risk, the company added.

As opposed to the 2,000 or so words in one of the most rant-y press releases in recent memory back in January. Maybe Phil Schiller is typing away as we speak...

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Regular posts on regulation...