The European Commission has determined that iPadOS meets standards to be classified as a “gateway” platform because of its user base, among businesses and consumers. With the implementation of the Digital Markets Act (DMA) iPadOS will now need to adhere to regulations that prohibit favoritism towards Apples services and require support for third party app stores and payment methods.
Apple has a deadline of six months to ensure that iPadOS complies fully with these regulations. This could lead to changes in the tablet industry offering users options and creating a fairer market, for competitors. The Commissions investigation revealed that business users of iPadOS alone surpass the DMA thresholds by eleven times.
How Will Apple Respond?
Up, to now Apple has remained relatively quiet in its response. The company has expressed its willingness to engage with regulators in a manner to comply with all specified services. However making adjustments to iPadOS might pose difficulties due to its controlled structure. Apple will have to navigate a balance between opening up iPadOS while maintaining a focus on privacy and security which it has emphasized as crucial.
Failure to adhere could lead to fines amounting up to 10% of the turnover. Being the platform under scrutiny iPadOS will serve as a litmus test for how the Commission implements the new regulations. Both developers and consumers will be closely monitoring the extent of openness that iPadOS achieves within the EU.
The decision to regulate iPadOS under the DMA marks an extension of the EUs efforts to regulate tech gatekeepers. It remains uncertain whether Apple can harmonize requirements with its business objectives for this vital tablet operating system. One thing is certain. IPadOS will undergo changes, in the EU facing one of its significant regulatory challenges yet.
