Apple Inc. has raised serious concerns over European Union proposals that would require Google's Android operating system to allow interoperability with rival artificial intelligence services. In a regulatory filing reviewed by Reuters, the Cupertino-based tech giant labeled the draft measures an “urgent and serious concern,” warning they could expose users and devices to “profound risks.”
The European Commission is advancing the Digital Markets Act, its regulatory framework targeting dominant tech platforms, into the realm of AI assistants. The proposed rules aim to compel Android to open its ecosystem to competing AI agents, enabling functions such as sending emails, ordering food, and sharing photos across multiple apps. The Commission has set a July 27 deadline for a final decision, with stakeholder feedback due by May 13.
Apple's intervention underscores a rare alignment of interests between the iPhone maker and its longtime rival, Google. Both companies control dominant mobile operating systems—iOS and Android—that serve as gateways between users, hardware, applications, and data. Should Google be forced to open Android further, Apple would likely face similar demands for iOS, iPadOS, and macOS. “The EC is redesigning an OS,” Apple argued in its filing, referring to the operating system.
EU competition chief Teresa Ribera framed the measures as a way to “give more choice” to consumers. Henna Virkkunen, the bloc's technology policy lead, emphasized that “interoperability is key” as AI becomes central to mobile devices. The debate pits consumer choice against platform security, with Apple warning that forced openness could undermine device integrity.
Investors appeared unfazed by the regulatory headwinds. Apple shares rose 1.6% to close at $299.47, after touching an intraday high of $300.90. The company's market capitalization hovered around $4.41 trillion. The stock's resilience reflects strong fundamentals: Apple reported second-quarter revenue of $111.2 billion, a 17% year-over-year increase, and earnings of $2.01 per share. CEO Tim Cook called it the “best March quarter ever.” The board authorized an additional $100 billion for share repurchases.
Morningstar analyst David Sekera struck a measured tone, noting that iPhone sales, particularly in China, drove the revenue beat. He highlighted a gross margin of 49.3% but maintained his fair value estimate of $270 per share, calling the earnings report “no surprises here.”
Meanwhile, geopolitical dynamics add another layer of complexity. According to a White House official, Cook is among 16 executives accompanying President Donald Trump on a trip to China this week. Talks are expected to cover trade forums, business agreements, and the potential extension of a rare-earths truce. Prediction markets on Polymarket assign a 73% probability to a U.S.-China tariff agreement by May 31, though the market remains thin with only $42,200 in trades.
Apple's latest 10-Q filing outlines a range of risks: shifting macroeconomic conditions, tariffs, regulatory probes, and legal uncertainties. The company reminds investors that litigation outcomes are inherently unpredictable. As the EU pushes forward with its AI interoperability agenda, Apple's stance is clear: growth remains solid, shares are near record highs, and regulators should proceed with caution before granting deeper AI agent access within the mobile stack. Whether this reflects genuine engineering prudence or a strategic move to protect market dominance, Europe's decision this summer will be pivotal.
