EU Warns Apple Over Closed iPhone OS

The European Union warns Apple Inc., threatening severe fines, unless it opens up its highly secure iPhone operating system to competing technologies.

According to people familiar with the matter who spoke on condition of anonymity, EU watchdogs are scheduled to announce under the bloc’s new Digital Markets Act that the Cupertino, California-based company must comply with strict new rules on making operating systems fully functional with other technologies.

Commenting was denied by the European Commission. Apple did not answer a request for comment right away.

Even if the declaration stops short of becoming an official probe, the EU wants to force Apple to rework its services so that competing businesses can use the iPhone’s operating system. Ensuring that other developers have access to essential iPhone capabilities, including the payment chip and Siri voice commands, is one of the goals of the DMA.

Suppose Apple doesn’t comply with the DMA. In that case, the EU may ultimately choose to open a formal investigation, which could result in fines of up to 10% of the company’s annual global turnover.