(Bloomberg) -- The EU’s European Commission has pressed Apple Inc. to further open up the iPhone operating system to rivals, prompting the company to complain about requests from Meta Platforms Inc. that it says will undermine privacy.
The commission instructed Apple on Wednesday to rework the iOS operating system so that it’s more compatible with smartwatches, earbuds, headsets and other devices from competitors.
In a document posted online, regulators said that outside iOS developers should be provided with more details on how to request access to iPhone features. They also should be given a dedicated contact to handle the requests, the commission said. And the group wants Apple to adopt better processes related to rejected requests and for taking steps toward conciliation.
The dispute has become a major flashpoint for Apple, which says its closed system provides a superior experience to consumers and better guards privacy. The EU, meanwhile, has been trying to rein in the power of giant American tech companies.
As part of the push, regulators published an extensive list of features that it wants Apple to open to third-party developers. They cover technologies ranging from Wi-Fi connections to file-transfer features to the beaming of video from devices.
In response, Apple said that the EU’s Digital Markets Act, which lays out a broad set of guardrails for the world’s largest technology platforms, would put users at risk. In an online paper, the company said the rules force users “to open their devices — and their most sensitive data — to companies with a track record of violating their privacy.”
The firm singled out Facebook parent Meta as having made more requests than any other company to access Apple’s sensitive technologies under the DMA. “Meta is seeking to alter functionality in a way that raises concerns about the privacy and security of users,” Apple said.
In recent years, Meta has developed hardware devices — including the Quest virtual realty headsets and smart glasses — that pair with iPhones and Android devices. Meta also has clashed with Apple over privacy features and in-app fees for iOS applications, saying they have hurt the social media giant’s business.
Meta now has an opportunity under the DMA to have its products work more seamlessly with Apple’s technology. One of the aims of the flagship rules is to ensure that other developers can gain access to key Apple features, such as its Siri voice commands and payments chip.
“These processes will hurt innovation — companies should be able to compete with one another to make their own products work together in new ways that benefit users without giving their ideas away to competitors,” Apple said. “Apple is the only company being forced to share its innovations in this way with everyone else, including those who do not share its commitment to user privacy.”
Meta, meanwhile, argued that Apple is being anticompetitive.
“What Apple is actually saying is they don’t believe in interoperability,” a spokesperson said in a statement. “Every time Apple is called out for its anticompetitive behavior, they defend themselves on privacy grounds that have no basis in reality.”
The EU may decide early next year to launch a formal probe if Apple doesn’t step into line with DMA rules. That could eventually lead to hefty fines, amounting to as much as 10% of global annual sales.
The company is already facing a parallel investigation into its App Store rules for developers, which is also set to involve a major penalty.
--With assistance from Aisha Counts.
(Updates with Meta comment in 11th paragraph.)
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