At the recent WWDC 2024 event, Apple unveiled its latest AI-powered features, collectively known as “Apple Intelligence.” These cutting-edge capabilities are set to revolutionize user experiences across iOS 18, iPadOS 18, and macOS Sequoia later this year. However, there’s a catch – Apple has decided not to release these innovative features in Europe.

The European Commission’s Vice-President, Margrethe Vestager, criticized Apple for this move, citing concerns about potential anticompetitive behavior. According to Apple, the stringent interoperability requirements outlined in the European Union’s Digital Markets Act pose significant risks to user privacy and security.

Despite the absence of a standalone chatbot within Apple Intelligence, users can still access these AI features through various apps and services like Siri, Writing Tools, Mail, Photos, and more. While this approach aims to enhance user engagement and personalization, it has raised eyebrows at the European Commission due to perceived anti-competitive implications.

Margrethe Vestager emphasized that Apple’s decision signals an attempt to stifle competition in regions where the tech giant already holds substantial market dominance. As a designated “gatekeeper” under the DMA regulations, Apple faces increasing scrutiny from European authorities seeking to promote fair competition within the digital ecosystem.

Earlier this week, Apple made headlines as the first company formally charged under the DMA guidelines. The European Commission found that Apple’s App Store regulations fell short of compliance standards set forth by the legislation. In response to these developments, Apple announced plans to introduce sideloading and third-party app markets on its platforms as part of its efforts to align with DMA requirements.

Failure to comply with DMA regulations could result in hefty fines for Apple – up to 10% of its global annual revenue. Repeat violations may lead to even more severe penalties under EU law. Notably, China will also miss out on the launch of Apple Intelligence due to stricter regulations surrounding generative AI technologies.

In summary, while Apple continues to push boundaries with its AI innovations globally, regulatory challenges and compliance obligations remain key considerations for the tech giant in ensuring a level playing field across diverse markets.