Apple will not introduce artificial intelligence technology in the EU market due to regulatory concerns

Authors: Samuel Stolton and Mark Gurman

Apple Inc. is withholding access to a range of new technologies from hundreds of millions of consumers in the European Union, citing concerns over the bloc’s regulatory attempts to rein in Big Tech.

The company announced on Friday that it will block Apple Intelligence, iPhone Mirroring and SharePlay Screen Sharing from being available to users in the EU this year as the Digital Markets Act allegedly forces it to lower the security of its products and services.

“We are concerned that DMA interoperability requirements may force us to compromise the integrity of our products in a way that compromises user privacy and data security,” Apple said in a statement.

The EU’s DMA directive forces dominant technology platforms to comply with a long list of dos and don’ts. Technology services are prohibited from favoring their own offerings over those of competitors. They are prohibited from combining personal data across different services; blocked from using information collected from third-party sellers to compete with them; and must allow users to download applications from competing platforms.

As part of the rules, the EU has designated six of the biggest tech companies as “gatekeepers” – powerful platforms that require tighter controls. In addition to Apple, the list includes Microsoft Corp., Google’s parent company, Alphabet Inc. and Facebook’s owner, Meta Platforms Inc.

“Gatekeepers can offer their services in Europe, provided they comply with our rules designed to ensure fair competition,” the European Commission said in response to Apple’s plans.

Apple Intelligence — the company’s suite of artificial intelligence services — was the highlight of a recent presentation at the Worldwide Developers Conference, which also included updates to the iPhone maker’s operating systems. This technology will help summarize text, create original images, and retrieve the most relevant data when users need it. Push also includes an improved version of Siri, Apple’s once pioneering digital assistant.

New features have helped spark a rally in Apple’s stock price in recent weeks. Since its presentation at WWDC on June 10, the company’s shares have risen by approximately 9%, raising the company’s valuation to over $3.2 trillion. Shares were up 0.4 percent at $210.48 as of 2:19 p.m. in New York on Friday.

Apple’s decision to pause its rollout in the EU will mean that consumers in all of the bloc’s 27 countries, including France, Germany, Spain and Italy, will not have access to the company’s ambitious new artificial intelligence technologies for now. The software is scheduled to launch this fall, but will only work on certain Apple devices and only in the US language.

It is unclear how these features could violate the DMA, but withholding the technology risks irritating consumers in the region who could potentially put pressure on regulators.

iPhone mirroring and SharePlay screen sharing will also be discontinued as part of this move. The mirroring feature allows you to virtually use your device on your Mac’s display and have full control over it. SharePlay lets you share your iPad or iPhone screen with another device and remotely control it for technical support.

Apple executives have already been at loggerheads with the EU over attempts to rein in Big Tech’s market power. The company is set to receive a formal warning from EU regulators under the DMA on Monday for allegedly blocking apps from directing users to cheaper online subscription offers – a practice that has already paid them 1.8 billion euros ($1.9 billion). a fine imposed by Brussels regulators earlier this year, under traditional antitrust law.

The implementation of Apple Intelligence also poses complications in other parts of the world. The company will need another chatbot provider in China, where OpenAI’s partner ChatGPT is prohibited. Apple is considering entering into agreements with companies such as Baidu Inc. and Alibaba Group Holding Ltd., Bloomberg reported.