Apple is contesting a European Union mandate that demands the tech giant to open its iOS operating system to more competition. This directive is part of the Digital Markets Act (DMA), designed to curb the dominance of major tech firms. For Apple, this means allowing third-party apps, headphones, and devices to access certain iPhone features like notifications and Wi-Fi connections, which are typically exclusive to Apple products. On May 30, Apple officially appealed to the EU’s General Court in Luxembourg.
The company contends that adhering to the DMA would undermine the seamless user experience that its ecosystem offers. Apple argues that the EU’s requirements are not only costly and unreasonable but also threaten user privacy and security. The company claims that some firms are already seeking access to sensitive data that Apple itself does not access. A spokesperson noted that these regulations unfairly target Apple and could stifle innovation in Europe.
Apple further cautioned that enforced interoperability might jeopardize user privacy by giving control to “data-hungry” competitors. The company stressed that the appeal is in the interest of its European customers, aiming to preserve the quality and security they anticipate. Meanwhile, the European Commission remains firm on its decision, vowing to defend the DMA’s legality in court. Non-compliance could result in fines up to 10% of a company’s global annual revenue or even force a breakup of business segments in severe cases.
On Wall Street, AAPL stock has a Moderate Buy consensus from analysts, with 17 Buys, eight Holds, and four Sells in the past three months. The average price target of $228.22 suggests a 13.5% potential upside.
