EU Issues First DMA Interoperability Instructions to Apple

EU Directs Apple on Digital Markets Act Compliance

The European Union has issued initial guidance to Apple regarding compliance with the interoperability stipulations outlined in the Digital Markets Act (DMA). This landmark legislation aims to foster greater competition within digital markets.

The Commission stipulates that manufacturers of devices and applications should gain access to nine previously restricted iOS connectivity features. These include peer-to-peer Wi-Fi, NFC capabilities, and device pairing functionalities. Consequently, devices beyond the Apple ecosystem – such as Bluetooth headphones, smartwatches, and smart TVs – are expected to integrate more seamlessly with iPhones.

Potential for Expanded Interoperability

This development presents an opportunity for Google to extend the functionality of AirDrop to Android devices. Furthermore, headphone manufacturers could potentially integrate SharePlay, currently exclusive to AirPods.

These actions stem from the Commission’s launch of two specification proceedings against Apple in September. One focuses on ensuring effective implementation of the DMA’s interoperability requirements concerning access to iOS connectivity features, including notifications and device pairing.

Improving Access for Developers

The second proceeding addresses interoperability requests from third-party app developers concerning Apple’s iOS and iPadOS platforms. The Commission advocates for enhanced access to technical documentation and improved communication channels for companies utilizing these features. The EU is requesting “prompt communication and updates, and a more predictable schedule for evaluating interoperability requests.”

Apple’s designation as a “gatekeeper” under the DMA subjects its mobile platforms to the regulation’s interoperability rules for core platform services. Non-compliance with the DMA can incur penalties reaching up to 10% of a company’s global annual revenue.

Detailed Compliance Expectations

While the DMA provides initial guidelines, the Commission is authorized to issue more specific instructions when further clarification is deemed necessary for effective compliance.

The EU expresses concern that Apple isn't establishing a fair environment for third-party devices to integrate with its platforms. This includes issues like displaying iOS notifications on non-Apple smartwatches and achieving a streamlined iPhone pairing experience with non-Apple smart speakers.

Apple’s Response and Concerns

Apple has voiced its disapproval of both the DMA and these specific interoperability mandates.

The company contends that it is being unfairly targeted, as no other gatekeepers have yet been subjected to specification proceedings.

In a briefing, Apple criticized the Commission’s actions as hindering innovation, characterizing them as excessive intervention by regulatory bodies.

Impact on Innovation and Security

Apple argues that the DMA may compel it to release innovations to competitors immediately, potentially slowing down development and requiring extensive testing of third-party integrations before EU release.

Furthermore, Apple asserts that the interoperability requirements could compromise the privacy and security of its European users. It claims the EU is mandating the transmission of unencrypted data to third parties, despite Apple’s proposed mitigation strategies.

Specifically, Apple fears exposing sensitive user data – such as personal messages within notifications or Wi-Fi network details – to developers who could exploit it for tracking and profiling.

Meta’s Role and User Awareness

Apple notes that Meta, a company heavily reliant on tracking and profiling for advertising, has been a prominent requester of app interoperability capabilities.

Apple also states that the EU has prevented it from informing users about potential risks when they opt to receive iOS notifications on third-party devices. Users will only see a prompt asking if they wish to receive notifications, without additional context regarding potential privacy implications.

“Scare Screens” and Developer Criticism

Apple’s “scare screens” – informational pop-ups warning users about potential risks associated with third-party interactions – have drawn criticism from some developers. These developers argue that Apple uses such tactics to undermine the openness the DMA aims to achieve.

In a statement, Apple expressed its disappointment, stating that the EU’s decisions will “wrap us in red tape,” hindering innovation and forcing the company to provide its new features for free to competitors. The company maintains that this is detrimental to both its products and its European users, and will continue to engage with the Commission to address its concerns.

Establishing Fair Competition

Apple characterizes the Digital Markets Act (DMA) as potentially stifling innovation; however, numerous smaller firms have voiced concerns regarding the company’s limited interoperability. This week, Eric Migicovsky, the founder of Pebble, introduced new smartwatches and simultaneously published an extensive blog post detailing the constraints imposed by Apple that negatively impact the performance of third-party smartwatches.

Migicovsky asserts that achieving feature parity with the Apple Watch is unattainable for competitors. Specifically, he notes the inability of alternative smartwatches to fully manage text messages or interact with notifications – including dismissal, muting, or replying – among other limitations.

Describing his current venture as a “passion project” aimed at users desiring a customizable and open smartwatch experience, Migicovsky challenges Apple’s criticisms of the DMA. He contends that Apple is leveraging its dominant market position to confine consumers within its proprietary ecosystem, thereby diminishing competition and potentially inflating prices while hindering innovation.

The operating environment for third-party smartwatch developers has become increasingly challenging in recent years. Beginning with iOS 13, notification previews are concealed on the iPhone lock screen unless the device is unlocked. Consequently, smartwatch manufacturers require users to manually activate full content previews to access notification details.

Rather than requesting users to compromise their iOS security settings, Migicovsky advocates for access to the same Application Programming Interfaces (APIs) currently utilized by the Apple Watch. “For those in Europe, your support for representatives who enacted the DMA is appreciated,” he stated. “We intend to formally request interoperability with Apple Watch APIs under Article 6 of the DMA.”

Migicovsky’s public opposition to Apple’s platform restrictions reflects a broader sentiment among startup founders. Many believe Apple should dedicate resources to fostering a more equitable competitive landscape, enabling innovation and fair competition against the world’s most valuable technology company.