Apple Gets Ultimatum, Change or

Pay IDR 578 Trillion

Jakarta, CNBC Indonesia – Apple has received a stern warning from the European Union’s antitrust regulator. The warning asks Apple to open access to its software to competitors, or face a fine.

The European Commission has released the process for what Apple must do to comply with the Digital Markets Act (DMA), a new rule aimed at preventing tech giants from abusing their market share.

Although the action is not a formal investigation, increased enforcement could change Apple’s profitable business model by targeting iOS connectivity features for smartwatches, cellphones, virtual reality headsets, and other internet-connected devices.

The Brussels-based regulator will determine how Apple provides effective interoperability with functionality such as notifications, device pairing, and connectivity.

The second process concerns how Apple handles interoperability requests submitted by developers and third parties for iOS and iPadOS. The company is asked to ensure a transparent, timely, and fair process.

If Apple fails to comply with the new rules within six months, the EU can begin imposing fines on the Cupertino, US, company.

The regulator stipulates that tech companies that fail to comply with the law risk being fined the equivalent of 10% of their annual global turnover.

Last year, Apple generated total revenue of US$383.93 billion in Europe. This means that if it fails to comply with the new rules, Apple will have to pay more than US$38 billion (Rp. 578 trillion).

“Today is the first time that we are using the specification process under the DMA to guide Apple towards effective compliance with its interoperability obligations through constructive dialogue,” said EU Executive Vice President Margrethe Vestager, quoted by the New York Post, Monday (9/23/2024).

“We are focused on ensuring a fair and open digital market. Effective interoperability, for example with smartphones and their operating systems, plays a key role in this,“ Vestager added.

Apple has steadfastly refused to allow competitors to peek at its iOS source code. This allows the company to control the development, distribution and licensing of software.

Developers who want to install their apps on Apple devices must use Apple-provided tools such as Xcode and Swift, but they must comply with Apple’s guidelines

SOURCE : CNBC INDONESIA