FX.co ★ EU Designates Apple's IPadOS As Gatekeeper

The European Commission has classified Apple Inc.'s iPadOS as a "gatekeeper" under the Digital Markets Act (DMA), describing it as a crucial access point for businesses to connect with consumers. Apple has been given a six-month timeline to ensure iPadOS's full compliance with the DMA obligations.

Following the announcement, Apple's shares saw a hike of roughly 3.8 percent on Nasdaq, trading at $175.77.

The decision comes after an investigation by the Commission initiated in September last year to evaluate if iPadOS, while not aligning with the DMA's quantitative thresholds, nonetheless served as a pivotal gateway for businesses to reach end users. Off the back of the investigation, the Commission confirmed that iPadOS is a significant platform for businesses to access end-users, and identified Apple as having a secure, long-lasting market position regarding iPadOS.

Thierry Breton, Commissioner for Internal Market, conveyed, "We are concluding the debut market investigation for qualitative designation under the DMA, determining that iPadOS is indeed an essential gateway for businesses to interact with consumers. Our focus will continue on monitoring market progress and we will not shy away from initiating further investigations, should services below the thresholds also display traits of potentially being critical access points for business users."

In September the previous year, Apple's iOS operating system, Safari browser, and App Store were ranked as gatekeepers by the Commission. On the same day, tech giants such as Alphabet, Amazon, ByteDance, Meta, and Microsoft also acquired the gatekeeper tag. These companies were given until March 7, 2024, to comply with all DMA obligations.

Earlier this year, on March 25, the Commission launched investigations into rule non-compliance issues with Alphabet's Google Play and Google Search, Apple's App Store and Safari, and Meta's "pay or consent model." The Commission is pursuing additional investigative measures to gather data and information regarding Amazon's self-preferencing and Apple's alternate app distribution and new business model.

As of March 1, entities like Booking, ByteDance, and X had informed the Commission that their services might align with the DMA criteria, thereby being potentially subject to the new regulations on gatekeeper platforms. The final decision on these notifications will be taken by the Commission by May 13 at the latest.