Earlier this week, the EU’s competition chief, Margrethe Vestager, informed CNBC that Apple faces significant hurdles in complying with the landmark Digital Markets Act (DMA) tech legislation. This legislation has compelled Apple to make significant changes, including allowing alternative app stores on iPhones, enabling external browser engines, and permitting third-party payment options. However, it appears these regulations will also prevent certain key features of iOS 18 from reaching EU users. Apple has confirmed that three crucial iPhone upgrades announced at WWDC 2024 will be absent from iPhones in the EU later this year. The most significant of these is Apple Intelligence, a suite of AI features deeply integrated within iOS 18, designed to redefine iPhone capabilities in the age of generative AI tools like Google’s Gemini and Microsoft’s Copilot.
Apple Intelligence was anticipated to bring a smarter Siri, the ability to mirror an iPhone’s UI on a connected Mac, and SharePlay Screen Sharing updates that enable users to remotely annotate and even control another device. These features are now on hold for EU users. Apple cites concerns that the DMA’s interoperability requirements could compromise the integrity of its products, potentially jeopardizing user privacy and data security. While the company is engaging with EU regulatory authorities to potentially bring these features to EU iPhone users, there is no guarantee. Notably, none of these features have been included in the initial iOS 18 Developer Beta update. Bloomberg reports that some AI features within Apple Intelligence may not arrive until next year, with the full bundle launching later in the summer. However, EU enthusiasts will miss out entirely.
This situation raises further concerns about the impact on users. The DMA prioritizes interoperability, but Apple argues that this requirement could undermine user data security and privacy. Features like screen mirroring and Apple Intelligence, designed to operate seamlessly between iPhones and Macs, are prime examples of this potential conflict. It remains unclear whether Mac users in the EU will also miss out on key AI features with the rollout of macOS Sequoia. The current situation suggests that silicon isn’t the only dividing factor in experiencing the full potential of Apple products in 2024 and beyond. The path forward appears challenging. The European Commission has emphasized that gatekeepers are welcome to operate in Europe, but they must adhere to the rules ensuring fair competition. Apple, however, is keen to avoid losing a significant revenue opportunity. Apple Intelligence, for instance, is exclusive to the latest iPhone 15 Pro models and iPads/Macs equipped with at least an M-series chip. This exclusivity signifies a substantial market of potential buyers willing to upgrade for the benefit of AI-enhanced features.
