Apple Intelligence EU: Possible Mac release amid DMA regulations

There is evidence that the EU may finally get Apple intelligence – thanks to slight differences in the release notes of macOS Sequoia 15.1 and iOS 18.1. It was previously thought that the AI ​​feature would not be available in the bloc on any Apple devices due to the Digital Market Act.

Apple Intelligence is a suite of generative AI capabilities that will be integrated into the next generation of Apple devices running on iOS 18, iPadOS 18, and macOS Sequoia. Back in June, the Cupertino giant revealed via Bloomberg that devices in the EU would not come with Apple Intelligence this year. This was due to “regulatory uncertainties brought about by the Digital Markets Act.”

The DMA imposes rules on tech giants operating in the EU to promote competition, prevent monopolistic practices and increase user choice in the digital marketplace. Among other things, it requires companies to share data with third parties and prevents them from favoring their own products and services over those of their competitors.

It was previously claimed that users in the EU would not have access to Apple Intelligence on any devices, but Apple’s beta 1 release notes for macOS Sequoia 15.1 and iOS 18.1 suggest the opposite, as spotted by 9to5Mac.

See: Apple WWDC keynote: iOS 18, iPad OS 18 and macOS 15 Sequoia coming in autumn

Beta versions of the operating systems have been available to developers since July 29. The accompanying macOS notes say, “Apple Intelligence is not currently available in China,” while the iOS notes say, “Apple Intelligence is not currently available in the EU or China.”

Thus, EU-based developers with compatible Macs can download the beta version of macOS Sequoia 15.1 and try out Apple Intelligence, provided their device language is set to US English.

They can also download beta versions of iOS 18.1 or iPadOS 18.1 on their iPhone or iPad, but they cannot use Apple intelligence on them. This may happen even when the operating systems are made available to all EU Apple users.

Apple declined to comment on the differences in the release notes.

Apple can release Apple Intelligence for EU-based Mac users and still comply with DMA

The difference between releasing Apple Intelligence on macOS rather than iOS or iPadOS in the EU is, in fact, aligned with the DMA.

The act’s requirements only apply to 24 core platform services offered by seven “gatekeeper” companies, including Alphabet, Amazon, Apple, Booking, ByteDance, Meta, and Microsoft.

Of these 24, only the App Store, Safari, iOS, and iPadOS are considered core platform services – macOS is not. This is probably because its market share is relatively small compared to other operating systems, meaning it doesn’t have as much control or influence over the market.

So, theoretically, Apple can release Apple Intelligence on macOS Sequoia 15.1 in the EU without complying with the DMA requirements. It cannot do the same with Apple Intelligence on iOS 18.1 and iPadOS 18.1, as it would face fines from the European Commission.

SEE ALSO: macOS 15 Sequoia cheat sheet: Release date, name, features and more

It’s unclear why Apple is refusing to change Apple Intelligence to comply with DMA on all devices

Apple has not explained its reluctance to change Apple Intelligence, as well as iPhone mirroring and SharePlay screen sharing, so that they comply with DMA. But the need to allow third-party companies to interoperate with them may be a contributing factor.

According to a statement provided to The Verge by Apple spokesperson Fred Sainz, the company is “concerned that DMA’s interoperability requirements may force us to compromise the integrity of our products, potentially jeopardizing user privacy and data security.”

However, these interoperability requirements mainly apply to messaging services rather than AI like Apple Intelligence. Messaging platforms must allow users to communicate between different apps, and data must be easily transferred between services to comply with DMA.

Speaking at Forum Europa in June, European Commissioner for Competition Margrethe Vestager said, “I find it very interesting that (Apple says) ‘We will now deploy AI where we are not obliged to enable competition.’”

She described it as “an open declaration that they are 100% aware that this is another way to disable competition where they already have a dominant position.” If Apple had provided more detail about why Apple Intelligence’s compliance with the DMA would pose a security problem, Vestager’s point could have been immediately disproved.

“The EU is an attractive market of 450 million potential users and it has always been open for business for any company that wants to provide services in the European internal market,” European Commission spokesperson Thomas Regnier told TechRepublic in an emailed statement.

“All companies are welcome to offer their services in Europe, provided they comply with EU law.

“It is the responsibility of companies to ensure that their services are compliant with our law.”

Withholding Apple intelligence from EU users would have serious financial consequences — and Apple knows it

Many analysts expect the inclusion of Apple Intelligence to motivate consumers to upgrade their devices, as only the iPhone 15 Pro or Pro Max will initially be compatible with it.

Dan Ives, an analyst at Wedbush Securities, told Reuters he expects more than 15% of iPhone users will upgrade to the yet-to-be-announced iPhone 16 “because Apple Intelligence is the killer app many have been waiting for.”

Furthermore, Europe accounts for more than a quarter of Apple’s total revenue, so the loss of the region’s market upon the launch of Apple Intelligence would cost the company dearly. Thus, the firm is still in contact with the European Commission to see if a solution can be found.

According to 9to5Mac, Apple CEO Tim Cook said on an investor call last week that Apple is “engaging” with regulators to make AI features available to “everyone.” Cook was asked about the rollout of Apple intelligence in both the European Union and China.

Sanz’s statement to The Verge also said, “We are committed to working with the European Commission to find a solution that allows us to provide these features to our EU customers without compromising their security.”

What is the Digital Markets Act?

The DMA, established in 2022, is a European Union regulation that aims to promote fairness and competition among digital products and services. It established obligations for certain influential tech firms, called “gatekeepers,” who must comply with it in their daily operations.

These include:

• Providing users with access to data collected about them by Gatekeeper.
• Tracking users outside of your platform.
• Allowing third parties to interoperate within your platform.
• Allowing users to uninstall any pre-installed software or apps.
• Prioritization of services and products offered by third parties on Gatekeeper’s platform.

Fines for non-compliance with the DMA can be up to 10% of a company’s total global turnover, rising to 20% in cases of repeated violations. In more serious cases, the Commission may order an organisation to sell all or part of its business or ban the organisation from receiving related services.

Last month, Apple became the first technology giant to be formally charged by the European Commission for violating the DMA.

The Commission found that Apple has three sets of business rules that ultimately prevent iOS app developers from directing their users to third-party purchase options. This goes against the DMA, which states that developers should be able to direct their customers to purchase options outside of the App Store easily and free of charge.