The launch of the iPhone 16 marks a new chapter in the ongoing evolution of Apple's iconic smartphone. While the larger screen and upgraded camera may seem like familiar enhancements, they do not immediately set the iPhone 16 apart as a groundbreaking successor.
However, the real game-changer lies in its advanced AI capabilities — features that remain inaccessible to European users due to stringent regulations. The Digital Markets Act imposes restrictions on certain AI functionalities, limiting the iPhone 16's full potential within the European Union.
Apple and AI: Europe lagging
Apple's advancements in Artificial Intelligence, branded as “Apple Intelligence,” lag behind competitors like Microsoft and Amazon. Despite this, investor interest in the iPhone 16 remains high, which raises questions about whether this anticipation is warranted. One key issue is that the AI functionalities of the iPhone 16, such as a smarter Siri capable of summarising emails, are unavailable in the European Union due to the Digital Markets Act. This Act requires companies to open their app stores to competitors, a provision Apple has refused to comply with.
The Digital Markets Act: regulating Big Tech
The Digital Markets Act represents a significant effort by the European Commission to regulate the power of large technology companies. Its primary objective is to ensure that large digital platforms, which have secured a dominant and durable market position, do not abuse their market power.
Currently, twenty-two core platform services associated with six tech giants like Apple have been designated as “gatekeepers” under the Digital Markets Act, in consideration of their annual turnover and important and durable market position. This qualification subjects them to various obligations and prohibitions intended to maintain a fair and open digital market.
They include key measures such as:
- the prohibition of practices aiming to prioritise a company’s own services,
- the obligation to ensure the interoperability of services,
- the obligation to allow end-users to remove any pre-installed service, etc.
Non-compliance with these rules may result in sanctions, including monetary fines amounting to 10% of the company’s total worldwide turnover for a first-time offence.
Apple, however, opposes these measures, citing concerns over privacy and security. This has resulted in a situation where European users are unable to benefit from the latest AI innovations. There are in fact concerns on the part of European authorities regarding the processing and safeguarding of personal data by these generative AI features, as well as the potential unfair advantage they could provide iOS apps with over third-party ones.
The future of AI in Europe
The restrictions imposed by the Digital Markets Act are not unique to Apple. Other tech giants, such as Meta, also withhold certain AI applications from European users. Both companies hope that consumer pressure — driven by users who prioritise technological advancements over privacy concerns — will encourage the EU to amend its legislation. In the meantime, this issue is likely to gain more significance. For instance, as long as the legal uncertainties associated with the Digital Markets Act remain a concern for Apple, it may also block access in the EU to new iOS 18 features expected to launch within the year ahead. One such feature would be Apple’s “Visual Intelligence”, which allows users to conduct searches easily with the use of their iPhone camera.
For European users, the iPhone 16 undoubtedly offers many new possibilities, but the current legal framework, including the Digital Markets Act, primarily ensures the protection of fundamental rights such as privacy and competition. Although the restrictions on AI functionalities seem to delay the introduction of certain innovations in the EU, this mainly reflects Europe’s progressive approach to regulating big tech.
The European Union has taken the lead in ensuring a balanced and fair digital market, providing space not only for technological progress but also for consumer rights and privacy protection, as outlined in the GDPR. This regulatory framework prevents companies from gaining uncontrolled access to personal data, which is essential at a time when AI algorithms increasingly rely on vast amounts of personal information.
Conclusion
While it may cause some AI functionalities of the iPhone 16 to be unavailable in Europe for the time being, the Digital Markets Act represents an important step in ensuring an ethical and transparent digital ecosystem. The challenge now lies in finding ways to promote innovation within this regulatory framework, without compromising privacy or further entrenching market dominance.
Rather than being a hindrance, the Digital Markets Act can serve as a catalyst for tech companies to develop new approaches that respect both innovation and data protection. The ongoing discussions between Apple and the European Commission demonstrate that dialogue and cooperation between tech companies and regulators can contribute to the development of AI that safeguards users’ rights while fostering innovation.
The launch of the iPhone 16 marks a new chapter in the ongoing evolution of Apple's iconic smartphone. While the larger screen and upgraded camera may seem like familiar enhancements, they do not immediately set the iPhone 16 apart as a groundbreaking successor.
However, the real game-changer lies in its advanced AI capabilities — features that remain inaccessible to European users due to stringent regulations. The Digital Markets Act imposes restrictions on certain AI functionalities, limiting the iPhone 16's full potential within the European Union.
Apple and AI: Europe lagging
Apple's advancements in Artificial Intelligence, branded as “Apple Intelligence,” lag behind competitors like Microsoft and Amazon. Despite this, investor interest in the iPhone 16 remains high, which raises questions about whether this anticipation is warranted. One key issue is that the AI functionalities of the iPhone 16, such as a smarter Siri capable of summarising emails, are unavailable in the European Union due to the Digital Markets Act. This Act requires companies to open their app stores to competitors, a provision Apple has refused to comply with.
The Digital Markets Act: regulating Big Tech
The Digital Markets Act represents a significant effort by the European Commission to regulate the power of large technology companies. Its primary objective is to ensure that large digital platforms, which have secured a dominant and durable market position, do not abuse their market power.
Currently, twenty-two core platform services associated with six tech giants like Apple have been designated as “gatekeepers” under the Digital Markets Act, in consideration of their annual turnover and important and durable market position. This qualification subjects them to various obligations and prohibitions intended to maintain a fair and open digital market.
They include key measures such as:
- the prohibition of practices aiming to prioritise a company’s own services,
- the obligation to ensure the interoperability of services,
- the obligation to allow end-users to remove any pre-installed service, etc.
Non-compliance with these rules may result in sanctions, including monetary fines amounting to 10% of the company’s total worldwide turnover for a first-time offence.
Apple, however, opposes these measures, citing concerns over privacy and security. This has resulted in a situation where European users are unable to benefit from the latest AI innovations. There are in fact concerns on the part of European authorities regarding the processing and safeguarding of personal data by these generative AI features, as well as the potential unfair advantage they could provide iOS apps with over third-party ones.
The future of AI in Europe
The restrictions imposed by the Digital Markets Act are not unique to Apple. Other tech giants, such as Meta, also withhold certain AI applications from European users. Both companies hope that consumer pressure — driven by users who prioritise technological advancements over privacy concerns — will encourage the EU to amend its legislation. In the meantime, this issue is likely to gain more significance. For instance, as long as the legal uncertainties associated with the Digital Markets Act remain a concern for Apple, it may also block access in the EU to new iOS 18 features expected to launch within the year ahead. One such feature would be Apple’s “Visual Intelligence”, which allows users to conduct searches easily with the use of their iPhone camera.
For European users, the iPhone 16 undoubtedly offers many new possibilities, but the current legal framework, including the Digital Markets Act, primarily ensures the protection of fundamental rights such as privacy and competition. Although the restrictions on AI functionalities seem to delay the introduction of certain innovations in the EU, this mainly reflects Europe’s progressive approach to regulating big tech.
The European Union has taken the lead in ensuring a balanced and fair digital market, providing space not only for technological progress but also for consumer rights and privacy protection, as outlined in the GDPR. This regulatory framework prevents companies from gaining uncontrolled access to personal data, which is essential at a time when AI algorithms increasingly rely on vast amounts of personal information.
Conclusion
While it may cause some AI functionalities of the iPhone 16 to be unavailable in Europe for the time being, the Digital Markets Act represents an important step in ensuring an ethical and transparent digital ecosystem. The challenge now lies in finding ways to promote innovation within this regulatory framework, without compromising privacy or further entrenching market dominance.
Rather than being a hindrance, the Digital Markets Act can serve as a catalyst for tech companies to develop new approaches that respect both innovation and data protection. The ongoing discussions between Apple and the European Commission demonstrate that dialogue and cooperation between tech companies and regulators can contribute to the development of AI that safeguards users’ rights while fostering innovation.