EU designates Apple's iPadOS as gatekeeper under tough tech rules

The European Commission has announced that Apple's iPad operating system, iPadOS, has been classified as a gatekeeper under the EU's Digital Markets Act (DMA), citing its significant role for business users. This decision underscores the growing regulatory scrutiny faced by major tech companies operating within the bloc.

The DMA, which recently came into effect, has already identified 22 services owned by prominent tech giants such as Apple, Google, Microsoft, Amazon, Meta Platforms, and ByteDance as gatekeepers, responsible for controlling access to their platforms.

The European Commission's designation of iPadOS as a gatekeeper follows an investigation initiated in September of the previous year. Previously, Apple's iOS operating system, Safari browser, and App Store had also been classified as gatekeepers.

Margrethe Vestager, the EU's antitrust chief, emphasized the importance of iPadOS as a gateway for numerous companies to connect with their customers. Despite not meeting certain thresholds, the Commission's market investigation revealed that iPadOS plays a crucial role in facilitating business interactions and maintaining a large ecosystem of users.

According to the Commission, Apple's business user numbers far exceeded the quantitative threshold by eleven times, with end user numbers approaching the threshold and expected to increase in the near future. This indicates that both business users and end users are heavily reliant on iPadOS due to its extensive ecosystem.

Apple has been given six months to comply with the DMA requirements. In response to the EU's decision, the tech giant stated its commitment to engaging with the European Commission to ensure compliance across all designated services.

Breaches of the DMA regulations could result in significant fines, potentially amounting to as much as 10 per cent of a company's global annual turnover.

(With Reuters inputs)