Apple delays introduction of AI features in Europe due to regulatory uncertainties

6/24/2024, 12:06 PM

Flagship technology faces 'regulatory uncertainties' due to competition law from Brussels.

Eulerpool News Jun 24, 2024, 12:06 PM

Apple has announced that it will not introduce its new, groundbreaking artificial intelligence features for the iPhone in Europe at the same time as the rest of the world. The reason given is "uncertainties" due to new competition rules from Brussels.

Two weeks ago, the iPhone maker introduced a series of "Apple Intelligence" services and a partnership with OpenAI, which, according to CEO Tim Cook, represent the next big step into the era of generative AI. However, Apple stated on Friday that the complexity of adapting the system to EU regulations—which require that critical parts of iOS software and App Store services be interoperable with third parties—means that EU users will receive certain features later.

Due to the regulatory uncertainties arising from the Digital Markets Act (DMA), we do not believe that we can introduce three of these [new] features – iPhone Mirroring, SharePlay Screen Sharing Extensions, and Apple Intelligence – for our EU users this year," Apple explained on Friday.

The DMA is the flagship of the EU's digital regulations and aims to enable local start-ups to better compete with large tech companies, most of which are based in the USA. The DMA, among other things, forces large digital platforms to legally share data with others and prohibits them from prioritizing their own services over those of competitors.

Here is the translation of the heading to English:

"Apple and Brussels have been in a regulatory conflict for months over compliance with regulations after the EU launched an investigation in March to examine whether the company continues to undermine competition.

Apple Intelligence includes the company's proprietary generative AI models, which unlock new features such as writing aids, image and emoji generation, and a more powerful Siri assistant. These features are personalized and processed on customers' iPhones as well as in Apple's data centers, which, according to the company, provide an important layer of privacy and security.

The partnership with OpenAI enables users to direct more complex queries from the Apple ecosystem to ChatGPT, which utilizes one of the most powerful generative AI models in the world. Apple has stated that it may enter into similar partnerships with companies like Google Gemini.

The two other extensions of the next versions of Apple's operating systems, which will be delayed in the EU, allow users to control their iPhone from their Mac PC and share access to their device.

Apple stated that it hopes to make the features available to EU users at some point, but they need to be carefully reviewed to ensure they do not violate EU regulations.

For the rest of the world, Apple Intelligence is expected to launch later this year with iOS 18, iPadOS 18, and macOS Sequoia. "We are very motivated to make these technologies accessible to all users," said Apple on Friday. Analysts have stated that the AI features could provide an incentive for iPhone owners to upgrade to new models.

Due to the hardware requirements for running AI models, Apple Intelligence will only run on the latest iPhones with the A17 Pro chip as well as on Macs and iPads with the newer M chips.

Apple stated that it needs clarity from the European Commission on the extent of access it must grant to third parties to its Apple Intelligence features and device services. The iPhone maker has long criticized the DMA, claiming that it exposes users to privacy risks by weakening the strict control of Apple's software ecosystem.

Apple is not the first major tech company whose AI roadmap has been disrupted by EU regulations. Earlier this month, Meta announced that it would not introduce its latest AI models in Europe due to pressure from data protection authorities.

The European Commission, the executive body of the EU, stated: "The EU is an attractive market with 450 million potential users and has always been open for business for any company wishing to offer services in the European single market.

Gatekeepers are welcome to offer their services in Europe, provided they comply with our rules designed to ensure fair competition.

The warning from Apple comes after the Financial Times reported earlier this month that regulators in Brussels will accuse Apple in the coming weeks of violating DMA rules.

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