CUPERTINO (dpa-AFX) - Apple Inc. (AAPL) has decided to delay the launch of its highly anticipated Apple Intelligence AI features in the European Union.
This decision came as a response to concerns regarding security and privacy raised by the Digital Markets Act (DMA).
Thierry Breton, the European commissioner responsible for digital markets, expressed his concerns about Apple's impact on innovation and consumer choices, emphasizing the need for greater competition in the digital market.
According to Bloomberg, the postponement will affect the release of iPhone Mirroring, SharePlay Screen Sharing enhancements, and Apple Intelligence AI features in the EU until 2025. Apple cited the DMA's interoperability requirements as potential threats to iPhone security and user privacy, leading to the decision to delay the features.
Preliminary findings from the European Commission indicated that Apple's practices did not align with the DMA, as they limited app developers' ability to redirect consumers to alternative channels for offers and content.
To avoid fines amounting to 10% of its global revenues, Apple has been given a 12-month timeline to ensure compliance with the EU regulations.
The EU is aiming to address these concerns through ongoing discussions rather than imposing penalties. Some of the key issues highlighted in the preliminary findings include charges to app developers for in-app purchases within seven days, a technology fee per app installation, and challenges in accessing pricing information on Apple's platform.
In response to feedback from developers and the European Commission, Apple has made modifications to its business terms to comply with the DMA. Apple believes that these adjustments are lawful and anticipates that the majority of developers will experience similar or reduced fees under the new terms. Additionally, Apple will be providing a written response to the European Commission regarding the preliminary findings, with the final decision expected to be made one year after the formal investigation commenced.
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