Apple has intervened in a European Union dispute targeting Google's Android, arguing that proposed regulations mandating broader access for competing AI assistants could endanger user privacy, weaken security, and impair device performance. The warning was submitted to the European Commission as the feedback period closed on Wednesday, with a final decision expected by July 27.
Background of the Dispute
The European Commission is considering measures under the Digital Markets Act (DMA) that would force Alphabet's Google to allow rival AI services deeper integration into Android's core functions. This includes access to features like sending emails, ordering food, and sharing photos, as well as the ability for third-party assistants to use their own wake words. The Commission argues this would enhance consumer choice, but both Apple and Google have pushed back.
Apple's Concerns
In its submission, Apple flagged “urgent and serious concerns,” warning that the draft measures could compromise privacy, security, safety, and device performance. The company also accused the Commission of “redesigning an OS” by questioning technical decisions made by Google's engineers. Apple argued that the rationale behind the case could set a precedent for its own platforms, including iOS, iPadOS, and macOS, where it maintains strict control over hardware and software to ensure user safety.
Google's Opposition
Google has also opposed the plan, with Senior Competition Counsel Clare Kelly calling it an “unwarranted intervention” that could increase costs while undermining privacy and security. The Commission alleges that Google keeps core Android functions largely to itself, channeling them into its own AI products like Gemini.
Market Context
The dispute comes at a critical time for both companies. Apple reported a record $111.2 billion in revenue for its March quarter, driven by strong iPhone 17 demand, and authorized an additional $100 billion in share repurchases. Before U.S. markets opened on Thursday, Apple shares traded at $298.87, while Alphabet shares stood at $402.62. The outcome of the EU's decision could have significant implications for both tech giants, as violations under the DMA can result in fines of up to 10% of annual global turnover.
Broader Implications
This case is part of a broader European effort to curb the dominance of major tech firms in the AI space. Meta recently offered rival AI chatbots free use of WhatsApp's business API for one month while it navigates separate antitrust talks with the Commission. Regulators face a delicate balance: loosening the rules could be seen as a failure of Europe's flagship digital law, while strict measures could embolden Apple to push back against EU requirements for wider platform access.
