The European Union has initiated two “specification proceedings” against Apple under the Digital Markets Act (DMA).

These proceedings aim to guide the tech giant on how to comply with specific interoperability provisions in the regulation, which is designed to ensure market fairness. If Apple fails to meet the EU Commission’s requirements, it could face fines of up to 10% of its global annual turnover.

Apple, along with six other companies, has been designated as a "gatekeeper" under the DMA, and the European Commission is tasked with enforcing the regulation. The Commission first launched a non-compliance investigation into Apple in March, focusing on concerns regarding the company’s practices. In June, the Commission’s preliminary findings indicated that Apple might have violated the DMA’s rules concerning how it manages its App Store. While this investigation is ongoing, the latest specification proceedings signal an escalation in the EU’s efforts to enforce compliance, particularly in the area of interoperability.

Apple has made various changes to its DMA compliance plan in response to EU scrutiny. These adjustments were introduced both before and after the Commission’s preliminary findings on the App Store. However, the European Commission is now ramping up its focus on ensuring that Apple complies with interoperability requirements, a key aspect of the DMA. Interoperability has been a hot-button issue, with Apple facing criticism for how it manages user interactions when they opt for third-party technologies over its own. For instance, concerns have been raised about the information screens displayed to iOS users when they try to switch from Apple’s services to alternatives.

One relevant precedent for the Commission’s current focus is its recent conclusion of an antitrust investigation into Apple’s contactless payment technology. In that case, the EU secured binding commitments from Apple to ensure interoperability for developers of competing wallet technologies. This experience may inform the Commission’s approach to clarifying Apple’s compliance with interoperability requirements under the DMA.

The DMA includes a detailed set of rules, outlining what is expected of gatekeepers like Apple. However, there can still be ambiguity regarding how these rules apply in specific cases. To address this, the Commission has the authority to issue detailed instructions, which is what it intends to do with the two new specification proceedings.

The first proceeding focuses on how Apple enables interoperability for connected devices that utilize iOS’s connectivity features. These devices include smartwatches, headphones, and virtual reality headsets, all of which rely on seamless connectivity with smartphones and their operating systems. The Commission wants to ensure that Apple provides effective interoperability for key functions like notifications, device pairing, and connectivity for such devices. In a press release, the Commission stated, “Connected devices are a varied, large, and commercially important group of products… The Commission intends to specify how Apple will provide effective interoperability with functionalities such as notifications, device pairing, and connectivity.”

The second proceeding is centered around the process Apple has established for handling interoperability requests from app developers and third parties for its iOS and iPadOS platforms, which are designated as "core platform services" under the DMA. The Commission is seeking transparency, fairness, and timely processing for these requests, ensuring that developers have a clear and predictable pathway to achieve interoperability. The Commission emphasized the importance of this in its statement, saying, “It is crucial that the request process is transparent, timely, and fair so that all developers have an effective and predictable path to interoperability and are enabled to innovate.”

Apple responded to these developments with a statement from spokesperson Julien Trosdorf, emphasizing the company’s commitment to privacy and security. In the statement, Apple highlighted the extensive range of APIs it provides to developers to access its operating systems and functionalities while ensuring user protection. The company also noted the steps it has taken to comply with the DMA, saying, “To comply with the DMA, we’ve also created ways for apps in the European Union to request additional interoperability with iOS and iPadOS while protecting our users. Undermining the protections we’ve built over time would put European consumers at risk, giving bad actors more ways to access their devices and data. We will continue to work constructively with the European Commission on a path forward that both protects our EU users and clarifies the regulation.”

The Commission now has six months to complete these two specification proceedings. Once concluded, it will issue preliminary findings to Apple, detailing the specific measures the company is required to take to meet the DMA’s interoperability standards. These findings will also be made public at that time.

It’s important to note that these new proceedings are separate from the broader non-compliance investigation the Commission launched against Apple in March. Therefore, Apple could still face further enforcement actions and potentially hefty fines if it is found to be in breach of the DMA. Nevertheless, the Commission’s current focus appears to be on securing swift compliance from Apple to ensure the effective implementation of the DMA rather than immediately resorting to financial penalties.

The initiation of the DMA proceedings has enabled the EU to take a more hands-on approach in shaping Apple’s compliance with the regulation. Over the past several months, Apple has made a number of changes to its initial DMA compliance plan. Some of these changes include allowing iOS apps to be distributed via the web, loosening restrictions on how developers can link to cheaper offers outside of the App Store, and giving users more options for browser choice. However, Apple’s efforts have not been without controversy. The company has introduced a slew of new fees as part of its compliance strategy, and critics argue that the changes still fall short of what’s necessary to meet the DMA’s goals.

In sum, the EU’s latest specification proceedings represent a significant development in its efforts to enforce the Digital Markets Act. While Apple has already made some adjustments in response to the regulation, the Commission’s focus on interoperability is likely to bring additional changes in how Apple operates. As the proceedings unfold, the outcome will not only shape Apple’s future compliance with the DMA but could also set important precedents for other gatekeepers under the regulation. The coming months will be crucial in determining whether the EU’s regulatory approach can strike a balance between fostering competition and ensuring user safety in the rapidly evolving digital market.