Apple is set to be warned by the EU to open up its highly guarded iPhone operating system to rival technologies, or eventually risk significant fines.

EU watchdogs are due to announce under the bloc’s new Digital Markets Act that the Cupertino, California-based firm must step into line with strict new rules on making operating systems fully functional with other technologies, according to people familiar with the matter, who spoke under condition of anonymity.

The European Commission declined to comment. Apple didn’t immediately respond to a request for comment.

While the announcement is a step shy of being a formal investigation, the EU aims to compel Apple to re-engineer its services to allow rival companies to access the iPhone’s operating system.

Fines

One of the aims of the DMA is to ensure that other developers can gain access to key iPhone features, such as its Siri voice commands and its payments chip.

The EU may later decide to launch a formal probe if Apple doesn’t step into line with the DMA, which could eventually lead to hefty fines of up to 10% of global annual turnover. — Samuel Stolton, (c) 2024 Bloomberg LP