EU Asks Apple To Open Its Ecosystem To Competitors

JAKARTA - European Union Industrial Commissioner, Thierry Breton, on Tuesday 26 September called on Apple CEO, Tim Cook, to open up the iPhone ecosystem, both in terms of hardware and software, to competitors. Breton's comments came after a meeting with Cook in Brussels.

"The next step for Apple and other Big Tech, under the DMA (Digital Markets Act), is to open its doors to competitors," Breton told Reuters.

"Whether it's an e-wallet, a web browser, or an app store, consumers using an iPhone from Apple should be able to take advantage of competitive services from a number of providers," he said.

The newly adopted DMA sets out a list of do's and don'ts for Apple and other tech companies to increase competition.

Breton also highlighted Apple's argument that security and privacy issues are the reason why it has a closed ecosystem. "EU regulations encourage innovation, without compromising security and privacy," he said.

So far, Apple has exclusively closed itself off from its competitors by creating its own system which can only be run with their operating system.

During this time Apple maintained its closed ecosystem policy for several key reasons:

  1. Quality and Security Control: Apple can ensure that all the apps and hardware running on their iOS devices meet certain quality and security standards. This helps protect users from malicious or unwanted applications that can damage devices or steal personal data.

  2. Consistent User Experience: By controlling both hardware and software, Apple can provide a more consistent and seamless user experience across its products. This helps ensure that iPhone, iPad, and Mac users get a uniform experience.

  3. Business Benefits: Apple generates significant revenue from selling applications through the App Store and other services. By keeping its ecosystem closed, Apple can maintain control over the app economy and capture a share of the revenue generated by developers.

  4. Security and Privacy: Apple has declared a commitment to user security and privacy. By controlling its ecosystem, Apple can ensure that users' personal data is closely guarded and is not misused by third parties.

While Apple's closed ecosystem has many advantages, it has also drawn criticism for limiting competition and innovation. Therefore, some regulators, such as the European Union, have pushed Apple to open up its ecosystem to competitors to increase competition and provide more choices to users.