The European Commission designates Apple’s iPadOS as Gatekeeper service under DMA rules

The European Commission has recently designated Apple’s iPad operating system (iPadOS) as a Gatekeeper service under its Digital Markets Act (DMA) rules. This decision comes after an eight-month investigation into whether iPadOS holds enough market power to warrant stricter regulation. The Commission cited that iPadOS is a crucial gateway for business users to reach end users, and that Apple has a dominant position with respect to iPadOS.

Under the DMA rules, iPadOS will now have to comply with a range of regulations, including allowing users in Europe to download apps from sources other than the Apple App Store, uninstall preloaded apps on iPads, and select default services such as browsers from choice screens. Failure to comply with these rules could result in fines of up to 10 percent of Apple’s global revenue, with higher penalties for repeat offenses.

The Commission’s investigation found that iPadOS users are locked into the platform, with a high number of business users exceeding the gatekeeper threshold. Additionally, the number of end users is predicted to increase in the near future. This lock-in effect highlights Apple’s market power in the operating system sector.

Comparison with iOS

Interestingly, Apple’s iOS, Safari browser, and App Store were already designated as Gatekeeper services under the DMA in September 2023, prompting the company to make regional changes to comply with the regulations. However, most of the compliance changes implemented for iOS have not been extended to iPadOS. This discrepancy raises questions about Apple’s approach to regulatory compliance across its different platforms.

The designation of iPadOS as a Gatekeeper service marks another significant development in the scrutiny of Apple’s ecosystem by regulatory authorities. While services like iMessage have been exempt from DMA compliance thus far, the ruling on iPadOS underscores the increasing pressure on Apple to open up its closed ecosystem to promote fair competition in the market. This decision comes at a critical time, as Apple prepares to unveil new iPads at its upcoming event.

The European Commission’s designation of Apple’s iPadOS as a Gatekeeper service under the DMA rules signifies a significant step towards regulating the tech giant’s market dominance. The decision highlights the importance of ensuring fair competition and consumer choice in the digital marketplace. It remains to be seen how Apple will respond to these regulatory challenges and whether it will make the necessary changes to comply with the DMA rules for its operating systems.