iPadOS Identified as Digital ‘Gatekeeper’ Under New EU Tech Rules

EU antitrust officials on Monday identified iPadOS, Apple’s operating system for iPads, as a significant digital gatekeeper under the EU’s new tech regulations, which carry strict requirements that aim to promote fair competition and expand options for consumers.

Last September, the Commission designated Apple as a gatekeeper for its iOS iPhone operating system, its web browser Safari, and its App Store. On the same day, the Commission opened a market investigation to assess whether iPadOS constitutes an important gateway for business users to reach end users in order to assess whether should be designated as a gatekeeper.

That investigation has now ended. According to a press release released on Monday, the Commission’s investigation found that Apple “presents the features of a gatekeeper in relation to iPadOS,” for the following reasons:

Apple’s business user numbers exceeded the quantitative threshold elevenfold, while its end user numbers were close to the threshold and are predicted to rise in the near future.

End users are locked-in to iPadOS. Apple leverages its large ecosystem to disincentivise end users from switching to other operating systems for tablets.

Business users are locked-in to iPadOS because of its large and commercially attractive user base, and its importance for certain use cases, such as gaming apps.Following the investigation, the European Commission concluded that iPadOS plays a crucial role for business users accessing the market and that Apple holds a significant and sustained market position. The Commission has now given Apple a six-month deadline to fully comply with the obligations set by the Digital Markets Act (DMA).

To be classified as a “gatekeeper” under the DMA, a company must fulfill certain criteria, including having sales across the EU of at least €7.5 billion, or a market capitalization of €75 billion or above. The designation also requires platforms or services to have more than 45 million monthly active users and over 10,000 active business users annually within the EU.

Companies that do not adhere to the new regulations risk facing EU investigations, substantial fines, and the imposition of “behavioral or structural remedies.” The fines can amount to 10 percent of a company’s global turnover, with a 20 percent penalty for repeat violations.

This article, “iPadOS Identified as Digital ‘Gatekeeper’ Under New EU Tech Rules” first appeared on MacRumors.com

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