😱 Apple vs EU

Apple Intelligence may not come to the EU.

TLDR: Apple Intelligence is likely not going to be released to the public in the EU, several sources claim. The announcement comes in the midst of regulatory challenges related to the Digital Markets Act.

👉 The what and the why

Apple recently announced that it is integrating various AI functionalities across its device ecosystem. However, according to several sources, these features may not be available in the EU at all.

The features were set to be integrated natively on an operating system level, making it seamless and easy to use. While features like AI writing, summarizing information, and prioritizing notifications are handy, they also create challenges with privacy.

Apple addressed the privacy concerns during the WWDC keynote, citing several measures it has taken to safeguard user privacy.

However, despite these measures, several sources claim Apple Intelligence may not be released to the public in the EU at all.

Digital Markets Act

The Digital Markets Act (DMA), introduced in 2023, aims to curb the dominance of major tech companies and support smaller businesses.

This legislation mandates that basic functions across various devices and ecosystems must be interoperable, affecting not just iPhones and iPads but also Macs, particularly with features like iPhone Mirroring.

Apple has expressed concerns that complying with the DMA's interoperability requirements could compromise the integrity of its products, potentially jeopardizing user privacy and data security.

The company is currently in discussions with the European Commission to find a way to offer these features to EU customers without compromising safety.

Learn from investing legends

Warren Buffett reads for 8 hours a day. What if you only have 5 minutes a day? Then, read Value Investor Daily. We scour the portfolios of top value investors and bring you all their best ideas.

👉 The implications for you

The obvious part is that anyone living in the EU may not be able to use basic features that are part of the Apple ecosystem elsewhere in the world.

Some of the affected features are:

  • Math Notes: Apple Math Notes is a newly announced feature part of the iPadOS lineup that allows users to do complex math calculations inside the Notes app.

  • GenMojis: Announced at WWDC 2024, GenMojis are emojis created with generative AI, allowing users to go beyond the standard set of premade emojis.

  • Writing assistant: Also showcased at WWDC, the inline writing assistant lets users edit, change, and rewrite text simply by highlighting it.

  • Image editing: These regulatory challenges may affect future image editing functionality powered by AI.

If the European Commission and Apple fail to reach a deal favoring all parties, this will have massive impacts on customers as it creates a separation in functionality between different continents. These negotiations will most likely take a very long time, though, and we’ll likely see more updates far into the future.

🔥 Our take on it

☁️ High-level perspective

While the delay is partly due to Apple's commitment to maintaining high privacy and security standards, the real deal here is Apple wants to maintain a locked-down system. Reason? Because it favors them financially.

This is not necessarily a bad thing; it simply is a fact that a publicly traded company needs to perform for investors.

However, this could also spark a louder conversation about how the EU is often perceived to hinder technological progress, which is already a common talking point.

Further, if the regulations are seen as too restrictive, consumer groups or even EU member states could backlash against the DMA. This might lead to amendments in the law to balance innovation with regulatory oversight.

🧑 Consumer perspective

Of course, at a consumer level, feature disparity between continents is rarely a good thing. The infamous blue bubble difference between Android and iPhone proves how even the slightest difference can cause major friction for users.

Imagine living in the US, talking to a friend in the EU, and trying to use functionality that is simply not available to them. This sounds like a headache, which definitely is not something Apple wants to create in its ecosystem.

Apple is known for its simplicity, ease of use, and devices that ‘just work’. These regulatory challenges can potentially cause a lot of friction and ultimately hurt sales.

Going forward, we’ll probably see long negotiations, and any solution will likely be far down the line. Meanwhile, let’s enjoy these features while everyone has them.

👋 See you on Thursday!

Share your thoughts! Reply directly to this email, we’d love to know what you think of today’s story.

Reply

or to participate.