EU hits back at Apple withholding Apple Intelligence from the region
European Union chief Margrethe Vestager says that Apple refusing to launch Apple Intelligence or iPhone screen mirroring in the EU is a "stunning declaration" of how anti-competitive the company is.
Margrethe Vestager, Executive Vice-President of the European Commission
On June 21, 2024, Apple announced that it will not be releasing either Apple Intelligence or iPhone Mirroring for users in the EU. At the time, Apple said that it "was committed to collaborating with the European Commission" to launch the features, but has security concerns because of requirements of the EU's Digital Markets Act (DMA).
The European Union did not immediately respond publicly. However, its antitrust executive Margrethe Vestager was directly asked about it in an interview at the Forum Europa conference in Brussels.
"So Apple have said that they will not launch their new enabled features in the IRS environment, and they say that they will not do that because of the obligations that they have in Europe," said Vestager. "And the obligations that they have in Europe, it is to be open for competition, that is sort of the short version of the DMA."
"And I find that very interesting, that they say we will now deploy AI where we're not obliged to enable competition," she continued. "I think that is the most sort of stunning, open declaration that they know 100% that this is another way of disabling competition, where they have a stronghold already."
To be fair to Vestager, this was one brief response in a Q&A session and she was not pressed for any details. It also wasn't a well-informed forum as the host reading the audience's question struggled to understand either what Apple Intelligence was, or the term "walled garden."
In her response, Vestager seems to have omitted the fact that Apple has explicitly stated that it wants to bring the features to the region. In its announcement, Apple said it was "highly motivated" to bring the features to the EU, but the DMA includes "regulatory uncertainties."
"Specifically, 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," said Apple. "We are committed to collaborating with the European Commission in an attempt to find a solution that would enable us to deliver these features to our EU customers without compromising their safety."
Apple's iPhone Mirroring, for example, appears to use Device Attestation. This is complex, but essentially means both Mac and iPhone know precisely what device is on both sides of a connection, and that the user is who they say that they are based on biometrics or passwords. DMA requirements would require Apple to make this work with Android, which is where Apple's security concerns come in.
Then Apple offering its Apple Intelligence only on the iPhone also has DMA implications, given that it only works on Apple devices. From previous statements including ones to AppleInsider, it's known that Apple has been continually working with the EU on its responses to the DMA, so it's reasonable to assume that will continue.
As the DMA stands, there is no equivalency requirement, where Apple has to offer the same features to the EU that it does in the US, or vice versa. So, Vestager can say that she doesn't like it all she wants, but there's nothing at present that can force Apple to change their tune.
However, separately, the EU has also told Apple that it believes the company is failing to comply with the DMA with compliance steps that it has already taken. Vestager previously said the EU has "serious issues" with Apple, and it is continuing to investigate concerns including anti-competitive actions.
The announcement of these preliminary findings over non-compliance follow the EU's decision to fine Apple $2 billion over allegedly favoring its own Apple Music service over the far more successful rival, Spotify.
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"Specifically, 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," said Apple. "We are committed to collaborating with the European Commission in an attempt to find a solution that would enable us to deliver these features to our EU customers without compromising their safety."
And then this:
"From previous statements including ones to AppleInsider, it's known that Apple has been continually working with the EU on its responses to the DMA, so it's reasonable to assume that will continue.
Leads to the question: Why even bother putting the subject into the public domain if communication and clarification are ongoing?
Far better to say as little as possible until things are clarified. All it takes is clarification and all for a roll out that isn't even planned for this year!
Basically FUD on Apple's part and Vestager has a valid point in her response to a question that wouldn't have been asked if it weren't for Apple.
Think about how faulty your logic is.
The faster the EU toss Vestager and the commission they better they will be.
current idea — create a subsidiary (or similar) in the EU whose purpose is to make compliance products for the EU. These products might have to lag the rest of the world by several years, and some features might never come to the EU. Apple might need EU specific servers that allow the EC to spy on EU citizens. Staff that subsidiary with European lawyers and former bureaucrats. Let it run for as long as it is profitable. If it stops being profitable, shut it down and exit the EU.
an advantage of this approach is that Cupertino doesn’t have to waste time trying to comply with the EU — outsource that (in a sense) to Europeans. If the Europeans can figure out how to adapt apple products and services to make money in Europe, great. If not, leave.
The point is 'making a meal out of something' and putting it down to the DMA even when Apple itself claims it's in contact with the EU on the subject and also claims not to know what is possible or not.
It's all completely unnecessary on Apple's part. Why not simply ask the EU and wait for a reply?
Apple is very clear that they aren’t willing to break the promises that they’ve made to their customers everywhere to provide a safe, secure, and privacy preserving family of products and services while also conforming to the local and regional edicts of the markets they are selling into - to the extent possible. If those edicts would compromise Apple’s promises to their customers Apple should absolutely exit those markets, which may be the intended purpose of the edicts in the first place.
This stuff should be very easy to wok out but it’s failing miserably. In the larger scheme of things the topics that are being complained about are chickensh**. If they can’t resolve these small things how will both parties adopt a more constructive approach to reaching a mutually agreeable resolution when the stakes are much higher?
*proceeds to withhold something all its people want*
If they had simply asked and waited for a reply we wouldn't even be talking about this now. No one would have brought the question up in the first place. Vestager wouldn't have said anything.
But no, Apple decided to FUD things up.
That's their call but it's pretty foolish, petty and probably won't help in the bigger scheme of things.
Apple’s going for friction so... so be it.
So, what exactly is the downside for Apple to simply pull out of the EU until there is a more favorable business climate there? I can't see any upside to staying at this point.