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Apple Delays AI Product Launch in EU Due to DMA Compliance Issues

ByHuey Yee Ong

Jun 24, 2024

Apple Delays AI Product Launch in EU Due to DMA Compliance Issues

Apple has announced that it will not launch its new “Apple Intelligence” AI product, along with three other features, in the European Union in 2024.

The decision stems from concerns over the Digital Markets Act (DMA), a regulation aimed at ensuring interoperability across different platforms to foster competition and reduce the market dominance of major tech firms like Apple. The company cited the potential risks to user privacy and data security that could arise from adhering to the DMA’s requirements as the reason for the delay.

The DMA, implemented by the EU in 2023, targets the influence of major tech entities, including Amazon, Apple, Alphabet, Meta, Microsoft, and ByteDance, which have been labeled as “gatekeepers” restricting competition from smaller companies.

One of the DMA’s key stipulations is that products must possess basic functionalities that operate seamlessly across various devices and ecosystems. This requirement affects Apple’s products, notably the iPhone and iPad, and extends to Mac due to the iPhone Mirroring feature, which allows the iPhone screen to be displayed on a Mac.

Among the postponed features are enhancements to Apple’s SharePlay and iPhone Mirroring, alongside the debut of Apple Intelligence. This AI tool boasts capabilities such as proofreading texts, rewriting them in different tones, creating customized emojis, searching specific messages, summarizing and transcribing phone calls, and managing priority notifications. Apple also revealed plans for a partnership with OpenAI and future expansions to the platform.

Despite these innovative advancements, Apple’s shares remained stable following the announcement. In 2023, Apple’s net sales in Europe reached $94.3 billion, nearly a quarter of its global net sales. The company also confirmed that Apple Intelligence would not be available in Greater China, where it generated $72.6 billion in sales last year.

Apple expressed its intention to collaborate with the European Union to explore potential solutions that would permit the introduction of these features without compromising the safety and privacy of its EU customers.

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Featured Image courtesy of Karl Mondon/Digital First Media/The Mercury News via Getty Images

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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