The European Commission has officially categorized the iPad operating system as a Gatekeeper service under its Digital Markets Act (DMA) regulations, following an extensive investigation lasting nearly eight months.
This examination, initiated around September 2023, marked the first market inquiry conducted by the Commission since the DMA was initiated.
Apple’s iPadOS under DMA
iPadOS joins other Apple products like iOS, Safari, and the App Store in this classification.
The Commission highlighted the significant number of business users of Apple products, with an expectation of future growth, as well as the perceived lock-in effect for both end-users and business users to iPadOS.
Key Findings:
- Apple’s business user base surpassed the threshold significantly (elevenfold), while end-user numbers were nearing the threshold and are projected to increase.
- End users are effectively tied to iPadOS due to Apple’s ecosystem, discouraging switching to other tablet operating systems.
- Similarly, business users are tied to iPadOS due to its extensive user base and importance for specific applications, such as gaming apps.
Based on these findings, the Commission concluded that iPadOS serves as a crucial gateway for business users to access end users, and Apple holds a strong and lasting position regarding iPadOS.
DMA Implications
As per the DMA regulations effective since March 7th, iPadOS must adhere to various rules granting European users the ability to download apps from sources outside the App Store, uninstall preloaded apps, and choose default services like browsers.
Previous Decisions
In February, the EU decided not to subject Apple’s iMessage to DMA regulations, thus avoiding an obligation to make it interoperable with other platforms.
While iMessage remains exempt from DMA compliance, the decision regarding iPadOS represents another significant development in the regulation of Apple’s ecosystem.
Compliance Deadline
Apple has been given six months to ensure full compliance with DMA obligations for iPadOS. Failure to comply could result in fines of up to 10% of global revenue, or up to 20% for repeated violations.
The EU’s announcement precedes Apple’s upcoming event on May 7th, where new iPad models, including the rumored OLED variant, are anticipated to be unveiled.
Speaking about the announcement, Margrethe Vestager, Executive Vice-President in charge of competition policy, said:
The Digital Markets Act is a dynamic tool that empowers us to address the dynamics of digital markets. Today, we’ve included Apple’s iPadOS within the ambit of DMA obligations.
Our market investigation revealed that despite not meeting the thresholds, iPadOS serves as a crucial gateway for numerous companies to connect with their customers.
This decision ensures the preservation of fairness and contestability on this platform, alongside the 22 other services designated last September. Apple has six months to ensure iPadOS compliance with the DMA.