Apple revealed that its Apple Intelligence AI product and other new features will not be available in the European Union (EU) throughout 2024. This decision was because of the strict requirements of the EU’s Digital Markets Act (DMA), which Apple believes could compromise the privacy and security of its users.
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Apple announced that it will delay the launch of Apple Intelligence, iPhone Mirroring and enhancements to its SharePlay screen-sharing product in the EU due to concerns related to the DMA.
Apple cited the interoperability requirements of the DMA, suggesting that complying with these regulations could compromise the integrity of its products.
The DMA, passed by the EU in 2023 plans to promote competition and curb the dominance of large tech companies termed as “gatekeepers”.
It mandates that these companies must allow interoperability between their platforms and competing services.
The DMA specifically targets major players like Apple, Amazon, Alphabet, Meta, Microsoft and ByteDance, addressing concerns over their market dominance and gatekeeping practices.
In 2023, Apple reported net sales of $94.3 billion in Europe, representing nearly a quarter of its global revenue.
The absence of Apple Intelligence and other features may be a setback for EU consumers, who were looking forward to the benefits of these new technologies.
This Apple Intelligence product includes advanced functionalities such as proofreading, custom emoji creation (Genmoji), message searching, call summarization and priority notification management.
A feature allowing users to replicate their iPhone screen on a Mac, extending the functionalities and user experience across devices.
Upgrades to the screen-sharing capabilities, facilitating a more interactive experience during remote collaborations and entertainment.
Apple addressed its commitment to user safety and privacy expressing concerns that the DMA’s requirements could force compromises that undermine these values.
Apple intends to work with the European Commission to explore solutions that would enable the rollout of these features in the EU without compromising user safety.
The EU has been addressing the dominance of major tech companies implementing regulations that promote fair competition and protect consumer interests.
An EU spokesperson highlighted that the European market remains attractive and open to companies that comply with its regulations aimed at ensuring fair competition and interoperability.
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Similar to the EU, Apple Intelligence will not be available in China, another huge market with $72.6 billion in sales in 2023.
Apple introduced a suite of AI-driven functionalities known as “Apple Intelligence,” designed to enhance user experience through automation and integration.
This allows users to project their iPhone screen onto a Mac, providing easy interaction between devices. An upgrade aimed at improving real-time sharing of content and applications during FaceTime calls.
An AI suite integrating OpenAI’s ChatGPT with Apple’s ecosystem to provide advanced search capabilities, image and text generation and email summarization.
These features are expected to be available on the latest Apple devices including the iPhone 15 Pro, iPhone 15 Pro Max and devices with Apple’s M1 chip and later versions.
Apple’s decision to delay the launch in Europe is primarily due to the Digital Markets Act (DMA). The DMA is a piece of legislation aimed at ensuring fair competition by imposing obligations on major tech companies referred to as “gatekeepers.”
In an official statement, Apple highlighted, “The interoperability requirements of the DMA could force us to compromise the integrity of our products in ways that risk user privacy and data security.”
Apple has committed to discussions with the European Commission to find a solution that will allow the introduction of these features without compromising user safety.
The company aims to work collaboratively with EU regulators to align on requirements that safeguard user data while complying with regulatory frameworks.
Gatekeepers must ensure that their products and services can interact with those from other companies.
Obligates companies to share certain types of data with competitors. Requires platforms to allow users to uninstall pre-installed apps and select default applications from various providers.
Non-compliance can lead to fines reaching up to 10% of a company’s global turnover with repeat offenders facing even steeper penalties.
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