EU Accuses Apple of Using AI Delays to Hinder Competition

The EU’s competition chief Margrethe Vestager has criticized Apple for delaying AI features in the EU due to regulatory requirements under the Digital Markets Act (DMA), suggesting the company is using this as an excuse to hinder competition.

Apple’s AI delays in the EU: Apple recently announced it would delay certain AI features on EU iPhones, citing “regulatory uncertainties” and “interoperability requirements” under the DMA as the reasons:

• The delayed features include AI-powered screen mirroring and SharePlay, which were unveiled at WWDC 2024 for iOS 18 and macOS 15.
• Apple’s decision has drawn scrutiny from the EU, with concerns that the company may be using the DMA as a pretext to limit competition in markets where it already has a strong position.

EU competition chief’s response: At a Forum Europa event, Margrethe Vestager, the EU’s competition chief, expressed her dissatisfaction with Apple’s move:

• Vestager found it “very interesting” that Apple openly declared it would deploy AI only where it’s not obliged to enable competition under the DMA.
• She interpreted this as a “stunning, open declaration” that Apple knowingly uses AI to disable competition in markets where it already has a stronghold.

Broader implications: The tension between Apple and the EU highlights the ongoing challenges in regulating Big Tech and ensuring fair competition in the digital market:

• The DMA, which came into force in November 2022, aims to create a level playing field by imposing obligations on large digital platforms, known as “gatekeepers,” to prevent them from engaging in anti-competitive practices.
• Apple’s decision to delay AI features in the EU raises questions about the effectiveness of the DMA in promoting competition and innovation, as well as the potential for companies to use regulatory compliance as a justification for limiting competitive threats.
• The situation underscores the need for a delicate balance between regulation and innovation, ensuring that the DMA achieves its intended goals without stifling technological progress or allowing dominant players to exploit loopholes.

As the DMA continues to shape the digital landscape in the EU, the ongoing tension between Apple and the European Commission serves as a test case for the regulation’s ability to rein in Big Tech’s market power and foster a more competitive environment. The outcome of this dispute could have significant ramifications for the future of AI development and deployment in the EU, as well as the broader relationship between tech giants and regulators.