The EU's Digital Markets Act (DMA) Delivers a Blow to Apple: iOS 19 and iOS 20 to Mandate Interoperability Changes

The EU's Digital Markets Act (DMA) Delivers a Blow to Apple: iOS 19 and iOS 20 to Mandate Interoperability ChangesThe European Commission today issued a notice outlining significant changes Apple must implement in future iOS 19 and iOS 20 updates, stemming from the DMA, which fully came into effect in March 2024. The act, aimed at boosting market competition by forcing large tech companies to improve the interoperability of their services, has been met with strong opposition from Apple

The EU's Digital Markets Act (DMA) Delivers a Blow to Apple: iOS 19 and iOS 20 to Mandate Interoperability Changes

The European Commission today issued a notice outlining significant changes Apple must implement in future iOS 19 and iOS 20 updates, stemming from the DMA, which fully came into effect in March 2024. The act, aimed at boosting market competition by forcing large tech companies to improve the interoperability of their services, has been met with strong opposition from Apple. The notice details specific interoperability requirements Apple must adhere to under the DMA, essentially mandating further opening of the iPhone and its related technologies to allow easier access for competitors and third-party devices into the Apple ecosystem.

These mandated changes span several key areas, directly challenging Apple's existing business model and product strategy. The notice specifies detailed timelines and technical requirements, many with clear deadlines, suggesting significant technical adjustments and development pressure for Apple.

Firstly, regarding smartwatch interoperability, Apple must ensure third-party smartwatches can display and interact with iOS notifications by the end of 2025. This likely means implementation as early as iOS 19.2, requiring complex software adaptation and functional integration within a relatively short timeframe. This will directly impact Apple Watch market share, giving competitors a significant opportunity to enter the market.

Secondly, concerning audio device interoperability, Apple must provide automatic audio switching functionality for third-party headphones by June 1, 2026. Currently exclusive to Apple AirPods and some Beats headphones, this feature allows seamless switching between Apple devices (like Macs and iPhones). This mandated change opens this core functionality to all third-party headphone manufacturers, weakening Apple's competitive edge in the audio ecosystem and potentially impacting sales of its existing products. This feature is expected to launch in iOS 19.4 at the earliest.

Furthermore, by June 1, 2026, Apple must modify iOS to allow third-party alternatives to AirDrop functionality. AirDrop is a core feature for quick and easy file and data sharing between Apple devices. This change means Apple will have to open its underlying technology and protocols, allowing third-party developers to build apps with similar functionality. This will significantly increase the workload for Apple's development team and potentially diminish AirDrop's uniqueness and user stickiness.

Moreover, Apple must also modify iOS in iOS 20 (or before the end of 2026) to permit third-party alternatives to AirPlay functionality. AirPlay is a key feature in the Apple ecosystem for wireless audio and video streaming. The impact of this change will be similar to that of AirDropopening underlying technology and allowing competitors to develop similar applications. This will significantly impact Apple's media ecosystem and hardware sales, as AirPlay is often cited as a major advantage of Apple devices.

Its important to note that before the release of iOS 20, Apple must meet other DMA requirements in specific areas, details of which can be found on the European Commission's website. These undisclosed details might contain further unfavorable requirements, exacerbating the pressure on Apples adjustments.

Apple has publicly expressed strong dissatisfaction with the Commission's mandates. In an official statement, Apple stated these requirements are "bad for our products and for European users," condemning the regulations for "burdening us with red tape, slowing down Apple's ability to innovate for European users, and forcing us to give away new features for free to companies that dont have to follow the same rules." This highlights Apple's strong resistance to the DMA and its concerns about the impact on its business model and competitive advantage.

iOS 19 is expected to be released at WWDC 2025 in June, with iOS 20 following a year later. This means Apple has less than a year to complete modifications to iOS 19 to meet some of the Commission's requirementsa significant challenge for its large software development team. The urgency and technical difficulty will be two major challenges for Apple in the coming year. These changes will not only affect Apple's software development strategy but will also have a profound impact on its hardware sales, market positioning, and overall business model. The European Commission's move will undoubtedly have far-reaching consequences for the global tech industry and sets a significant precedent for other large technology companies. Whether other countries or regions will follow suit remains to be seen.