Global: Apple Delays AI Features in EU Due to Digital Markets Act Concerns

Apple has decided to delay the release of several new AI features in the European Union, including Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing, due to concerns about the regulations imposed by the Digital Markets Act (DMA), according to various press reports.

Apple Intelligence Overview

Apple Intelligence is the company’s latest artificial intelligence enhancement. An Apple spokesperson described it as a suite of “highly capable” large language and diffusion models, along with an “on-device semantic index” designed to work across apps to identify and process data for various functions, including improving the Siri voice assistant.

Key Features on Hold

• iPhone Mirroring: This feature allows users to view and control their iPhones directly from their Macs.
• SharePlay Screen Sharing: Enables FaceTime users to take control of others’ devices during conversations.

Fred Sainz, Apple’s senior director of corporate communications, expressed concerns to The Verge, stating, “We are concerned that 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.”

EU’s Stance on Big Tech

The EU has designated Apple as one of six “gatekeeper” corporations under the DMA due to its significant market power. Other gatekeepers include Alphabet, Amazon, ByteDance, Meta, and Microsoft. These companies, operating 22 “core platform services,” must adhere to stringent rules regarding third-party interactions, user data control, and businesses’ rights to verify advertising on their platforms.

Implications of the DMA

The Digital Markets Act, which took effect in May 2023, aims to regulate the operations of major tech companies to ensure fair competition and protect user privacy. Non-compliance with these rules could result in hefty penalties of up to 10% of a company’s total worldwide annual turnover, or up to 20% for repeated offenses, along with additional corrective measures. Apple is already under investigation for its business practices in the EU.

Market Impact

The European Union, comprising 27 member states and a population of 448.4 million, is a crucial market for global tech companies. Apple’s decision to delay these features highlights the significant impact of the DMA on its operations and strategic planning.