The European Union has recently designated Apple’s iPadOS as a “gatekeeper” under tough EU tech rules, following the implementation of the Digital Markets Act (DMA) this year. This categorization is due to the significant influence iPadOS holds over business users, making it a crucial control point for accessing customers and users.

Under the DMA, gatekeepers like Apple are subject to specific regulatory obligations aimed at promoting fairness, competition, and innovation in the digital market. These obligations include measures to prevent unfair practices, ensure transparency, and facilitate access for smaller businesses and startups.

If companies fail to comply with the DMA regulations, they can face fines of up to 10% of their global annual turnover. For Apple, with a revenue of $385.70 billion in 2023, this penalty could amount to nearly $40 billion.

The EU’s decision to designate iPadOS as a gatekeeper follows an investigation that began in September last year. Previously, Apple’s operating system iOS, its browser Safari, and its App Store were also categorized as gatekeepers.

Apple now has six months to comply with the DMA regulations and has stated that it will “continue to constructively engage with the European Commission” in order to meet these requirements across all designated services.