Key Insights

• Apple’s AI features face delays in Europe due to regulatory complexities under the Digital Markets Act.
• EU’s rules postpone Apple’s AI capabilities in Europe while rolling them out globally.
• Digital Markets Act requires interoperability, causing Apple to delay AI features to ensure compliance.

Apple has announced that it will not launch its latest artificial intelligence features in Europe alongside their global release later this year. The decision is attributed to regulatory uncertainties stemming from the European Union’s new competition rules. The delay affects the release of iPhone Mirroring, SharePlay Screen Sharing enhancements, and Apple Intelligence in EU markets.

In a statement issued on Friday, Apple cited the complexities involved in aligning its systems with the Digital Markets Act (DMA). This regulation mandates interoperability of essential parts of Apple’s iOS software and App Store services with third-party providers. Apple emphasized that it is committed to eventually bringing these features to EU users, but the company needs to ensure compliance with EU rules to avoid potential legal issues.

Digital Markets Act and Compliance Challenges

The Digital Markets Act aims to foster competition within the EU by enabling local start-ups to compete more effectively with large technology companies. Among its provisions, the DMA requires major digital platforms to share data with other businesses and prohibits these platforms from giving preferential treatment to their own services.

Apple and the European Commission have been engaged in a regulatory standoff over the company’s adherence to these rules. The EU began investigating Apple in March to determine if the company was undermining competition. The ongoing scrutiny has made Apple cautious about rolling out new features that may conflict with the DMA’s stringent requirements.

Apple Intelligence, a suite of generative AI models, is a key component of the company’s new offerings. These models are designed to provide advanced features such as writing aids, image and emoji generation, and an enhanced Siri assistant. Apple has highlighted that these services are personalized for users and processed securely on their devices and in Apple’s data centers, ensuring a higher level of privacy and security.

Additionally, Apple has formed a partnership with OpenAI, allowing users to utilize ChatGPT for more complex queries outside of Apple’s ecosystem. This collaboration marks a significant step as Apple integrates more advanced AI capabilities into its product lineup. The company has also hinted at potential future partnerships with other AI developers, including Google Gemini.

Hardware Requirements and Global Rollout

The new AI features are expected to be available globally with the release of iOS 18, iPadOS 18, and macOS Sequoia later this year. However, due to hardware limitations, these features will only be supported on the latest iPhone models equipped with the A17 Pro chip, as well as on newer Macs and iPads featuring M series chips.

Apple’s announcement indicated that while the company is eager to make these technologies accessible worldwide, it must first navigate the regulatory landscape in Europe. The company has expressed concerns that the DMA’s requirements could potentially expose users to privacy risks by reducing Apple’s control over its software ecosystem.

EU’s Stance and Broader Industry Impact

The European Commission, the executive body of the EU, maintains that its market of 450 million potential users remains open to any company willing to comply with its regulations. The Commission stated, “Gatekeepers are welcome to offer their services in Europe, provided that they comply with our rules aimed at ensuring fair competition.”

Apple is not alone in facing challenges related to the EU’s regulatory framework. Earlier this month, Meta also decided against launching its latest AI models in Europe due to pressures from data protection watchdogs. These instances reflect the broader impact of the EU’s regulatory measures on the plans of major technology firms.

Apple has indicated its intention to work closely with the European Commission to gain clarity on the level of access it must provide to third parties for its new AI features. The company has historically criticized the DMA, arguing that it compromises user privacy by necessitating more open access to its tightly controlled software environment.

Despite these challenges, Apple remains committed to expanding its AI capabilities and delivering innovative features to its users. Analysts suggest that the introduction of these advanced AI functionalities could drive iPhone owners to upgrade to newer models, bolstering Apple’s market position.