EU commissioner asks Apple to open its ecosystem to competitors
EU Commissioner of Internal Market, Thierry Breton, has urged Apple CEO Tim Cook to open the tech giant's ecosystem of hardware and software to competitors, under the newly adopted Digital Markets Act (DMA). Apple has long maintained that security and privacy concerns are the reasons for its closed ecosystem. However, Breton has countered this argument, stating that "EU regulation fosters innovation without compromising on security and privacy."
Consumers should be able to benefit from competitive services
"The next job for Apple and other Big Tech, under the DMA (Digital Markets Act) is to open up its gates to competitors," Breton told Reuters. "Be it the electronic wallet, browsers, or app stores, consumers using an Apple iPhone should be able to benefit from competitive services by a range of providers," he added. Six companies, including Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft, have been listed as 'gatekeepers' who have to align their services to the Act.
What is the DMA (Digital Markets Act)?
The European Commission introduced the DMA to prevent large companies from abusing their market power. The DMA sets out a list of dos and don'ts for tech companies to follow in order to promote competition. The DMA requires gatekeepers, including Apple, to allow third parties to inter-operate within their own services, grant business users access to data generated by them, and permit businesses to conclude contracts and deals outside the platform.