Apple’s war of words with European regulators troubles markets

Apple has escalated its public dispute with officials in Brussels over competition rules and consumer choice, claiming the company’s integrated ecosystem is under threat from new regulations.

Over the weekend, the iPhone manufacturer bashed the European Union for blocking features of its walled ecosystem, arguing that it unfairly closes out the competition. Apple reiterated that its hardware and software are central to delivering the “magical, innovative experience” customers expect.

Greg Joswiak, Apple’s senior vice president of worldwide marketing, said in advance of the firm’s recent product launches that the EU rules are “a serious threat” to its ecosystem. This comes just five months after the European Commission fined Apple €500 million for “anti-competitive behavior” on its App Store.

EU wants Apple to open doors for more apps

Much of the dispute is against the backdrop of the EU’s Digital Markets Act (DMA), which took effect in 2022 and began applying in 2024. The law requires large tech firms to open up their platforms to competitors, including areas like messaging, and app stores.

For Apple, the rules mean it must ensure that devices such as headphones from other brands work seamlessly with iPhones. The company is also mandated to allow third-party smartwatch notifications to appear on its devices and to enable content sharing with non-Apple products via AirDrop.

“That means you actually have a choice over which device you’re going to use, and you can get them to talk to one another,” said Sébastien Pant of BEUC, an umbrella organization of consumer advocacy groups in Europe.

Apple’s pushback has affected the release of its new AirPods Pro 3 within the bloc. The wireless earphones come with a “Live Translation” feature for users to hear speech in their preferred language directly through the earbuds.

The company announced last week that the devices are available in the United States, but withheld their launch in Europe, citing the complexity of integrating with non-Apple products under DMA requirements.

Apple said the translation function can’t work without microphones from both the AirPods and the iPhone together, and opening access to third-party devices would force non-Apple engineers to meet the company’s “highest standards.”

“They want to take the magic away of having a tightly integrated experience and make us like the other guys,” Joswiak told reporters at Apple’s headquarters in Cupertino, California.

Regulators reject Apple’s appeals

On Friday, the European Commission rejected Apple’s bid to overturn most of its orders, forcing the iPhone maker to open its ecosystem. Apple has kept its disagreements with regulators unknown to the general public, claiming it was requested to do so. 

However, the company is now vocal, warning the United Kingdom’s Competition and Markets Authority not to follow the EU’s law enforcement tactics.

Big Tech companies like Apple, along with Meta, Google, and Amazon, are all facing exclusion from a new system for sharing financial data under the EU’s Financial Data Access (FiDA) regulation.

The regulation, now in its final stages of negotiation, is designed to allow third-party service providers to access customer data from banks and insurers for digital finance products like budgeting tools or financial advice platforms.

“This is one file where the Big Tech players are actually losing the lobbying fight,” said one EU diplomat involved in the negotiations.